#Nifty directions and levels for the second week of FebruaryGood Afternoon, Friends! 🌞
Here are the market directions and levels for the second week of February:
Market Overview
In the previous week, both markets experienced some fluctuations. However, the structures appear to indicate a range-bound market. In the upcoming week, the global market has several major events, including Fed Chair Powell's testimony, the Inflation Rate, Core Inflation Rate, PPI, Retail Sales, and more. On the local front, BJP has won the Delhi election, and it remains uncertain how the market will react to this. So, this week could be slightly volatile.
The structure of both Nifty and Bank Nifty suggests a range-bound market. Typically, movements in a range-bound market are unstructured, so we should approach this conservatively. This means that if we identify a clear structure, we can enter; otherwise, the success rate may decrease. Let's take a look at the charts.
Both Nifty and Bank Nifty exhibit the same structural sentiment.
Current 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 50% to 61% in the current swing.
> After that, if it finds support at either the 50% or 61% 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.
