#Nifty directions and levels for August 4th week.
Good evening, friends! 🌺🍬 Here are the market directions for the 4th week of August:
Global Market Overview
In the previous week, global markets had a solid bullish bias. However, this week, a few important events like the FOMC minutes, the Fed Chair's speech, and Initial Jobless Claims are on the horizon. So, the market may move based on these data releases. As per the chart structure, I'm expecting a bullish bias.
Nifty and Banknifty
Last week, both Nifty and Banknifty experienced significant swings, but these movements stayed within a range. Structurally, it's a range-bound market. So, if the market breaks out of this range, we can expect the next movement. Until then, the market will likely continue within the range. However, the global market is indicating a bullish bias, so if that plays out, we can expect the pullback continuation. But I started with a bearish bias because the structure suggests it. Let’s look at the charts.
Structurally, both Nifty and Banknifty represent the same sentiment:
Nifty - Current View:
If Nifty starts with a bullish bias in the upcoming session, then it may face rejection around the 61% Fibonacci level. If that happens, it may retrace a minimum of 23% to 38%. After that, if it finds support around the 38% level, the bullish sentiment will continue, and we can expect a rally once it breaks the previous high again. On the other hand, if it breaks below the 38% Fibonacci level, it may enter a correction phase. The correctional targets are expected to be a minimum of 61% to 78%. This is our first variation.
Alternate View:
The alternate view suggests that if the initial pullback sustains or breaks the 61% level, then the rally will continue with some minor consolidation. In this case, the targets are expected to be a minimum of 24,713 to 78%. If the rally faces rejection around the 78% level, we can expect a minor correction of 23% to 38%. This correction is minor.
Global Market Overview
In the previous week, global markets had a solid bullish bias. However, this week, a few important events like the FOMC minutes, the Fed Chair's speech, and Initial Jobless Claims are on the horizon. So, the market may move based on these data releases. As per the chart structure, I'm expecting a bullish bias.
Nifty and Banknifty
Last week, both Nifty and Banknifty experienced significant swings, but these movements stayed within a range. Structurally, it's a range-bound market. So, if the market breaks out of this range, we can expect the next movement. Until then, the market will likely continue within the range. However, the global market is indicating a bullish bias, so if that plays out, we can expect the pullback continuation. But I started with a bearish bias because the structure suggests it. Let’s look at the charts.
Structurally, both Nifty and Banknifty represent the same sentiment:
Nifty - Current View:
If Nifty starts with a bullish bias in the upcoming session, then it may face rejection around the 61% Fibonacci level. If that happens, it may retrace a minimum of 23% to 38%. After that, if it finds support around the 38% level, the bullish sentiment will continue, and we can expect a rally once it breaks the previous high again. On the other hand, if it breaks below the 38% Fibonacci level, it may enter a correction phase. The correctional targets are expected to be a minimum of 61% to 78%. This is our first variation.
Alternate View:
The alternate view suggests that if the initial pullback sustains or breaks the 61% level, then the rally will continue with some minor consolidation. In this case, the targets are expected to be a minimum of 24,713 to 78%. If the rally faces rejection around the 78% level, we can expect a minor correction of 23% to 38%. This correction is minor.
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