#Nifty directions and levels for December 23rd.Good morning, friends! 🌞
Here are the market directions and levels for December 23rd.
Market Overview:
The global market is showing a moderately bearish sentiment due to the solid pullback in the previous session (based on the Dow Jones). Meanwhile, our local market is displaying a bearish trend. Today, the market may open with a gap-up start, as the Gift Nifty indicates a 170-point positive sentiment.
In the previous session, the US market had a strong pullback, which might reflect in our market today. Gift Nifty is also pointing toward this possibility. So, how should we approach this?
If the gap-up sustains, we could interpret this as a sub-wave 4. Usually, the 4th wave is characterized by a three-wave structure, which we refer to as a consolidation wave. Therefore, we can expect some consolidation between the previous low and the 38% mark. This is the basic structure; let's look at it on the chart.
Both Nifty and Bank Nifty are currently showing the same structural sentiment.
Current View:
The current view suggests that if the market opens with a gap-up of less than 100 points and then declines initially, we can expect a slight further correction due to some sub-waves bending. However, if this occurs, the minor demand zone will act as strong support.
Alternate View:
The alternate view suggests that if the gap-up opens with more than 150 points and sustains, then the pullback could continue to the 38% level, with some consolidation as we discussed. This pullback could be interpreted as a 4th wave.
