#Banknifty directions and levels for the second week of FebruaryCurrent View:
The current view suggests that after the sharp pullback has ended, a minor correction is in progress. We can usually expect a three-wave structure in this correction. If it continues, we can anticipate a minimum correction of 38% to 50% for Bank Nifty in the current swing.
> After that, if it finds support at either the 38% to 50% level with a three-wave structure, it would indicate a continuation of the rally.
> However, we should seek some reversal confirmation using certain parameters, such as the EMA 20 or a breakout at the 38% Fibonacci level. This is the current view.
> Notably, due to the BJP's victory in the Delhi election, if the market starts this week with a bullish bias and breaks the previous high without forming this three-wave structure, we can also follow the upside levels. In this case, it could be considered an extension variation.
Alternate View:
The alternate view suggests that Gift Nifty indicates a negative start in the first session of the week. So, if a solid correction structure forms, the trend will likely continue once the price breaks below the 78% mark on the downside. Until then, we should consider both Nifty and Banknifty to be in a range-bound market.
