#Banknifty directions and levels for Jan 5th

5 Oca

Banknifty also opens neutrally based on Giftnifty's indication. Should it experience a pullback, it might reach 48391, entering the supply zone. Structurally, this marks a sub-wave 3rd continuation. If it rejects either 48391 or the supply zone, a minor 4th correctional wave might occur, ranging from 23% to 38% Fibonacci correction. Once the 4th wave completes (with support around 38%, displaying a three-wave structure), we can expect the 5th impulsive wave (pullback wave).

Bearish perspective: Even if it opens with a gap-down, considering it as a 4th correctional wave, we can follow the previous statement. The crucial aspect here is if it breaches the 38% Fibonacci level, it might enter a range market between yesterday's high and the previous low.