#Nifty directions and levels for December 18th.Good morning, friends! 🌞
Here are the market directions and levels for December 18th.
Market Overview:
The global market continues to show moderately bearish sentiment (based on the Dow Jones), while our local market is also exhibiting similar bearish signs.
In the previous session, both Nifty and Bank Nifty experienced solid corrections. So, what can we expect today? It’s important to remember that we are in a range-bound market and currently near its bottom. This makes predicting the next move challenging. However, based on the structure, I have observed some key points:
Even though the market fell yesterday, a minor diagonal structure formed at the end of the swing. If the market finds support around the immediate support level during the initial session, we can anticipate a 23% to 38% bounce back. However, the pullback can continue only if the market breaks the 38% retracement level. If it does, the next pullback targets could be at the 50% and 78% levels. Conversely, if it doesn’t break the 38% level, the market could consolidate before continuing its correction. This forms the basic structure. Let’s explain this further using the chart.
Both Nifty and Bank Nifty are currently showing the same structural sentiment.
Current View:
Today, the market may start negatively, based on the Gift Nifty sentiment. If this happens, we can expect a minimum correction down to MDZ. After this correction, if there is a rejection, a 23% to 38% bounce back could follow.
However, it is crucial to note that unless the market breaks the 38% retracement level, we cannot expect a further pullback continuation. This means the market’s bias will remain bearish until the 38% level is breached.
Alternate View:
The alternate view suggests that if the correction develops into a solid structure, it could continue further with some consolidation. In this case, we can use the EMA20 as a marker for potential reversals.
This means the solid correction will likely persist until the market breaks above the EMA20 level. However, it is important to note that the EMA20 is reliable only during solid movements. If the market undergoes prolonged consolidation, the EMA20 could generate false signals.
