#Nifty directions and levels for JAN 23

23 Oca 2024

#Nifty
Good morning, friends. Directions for December 20th: The global market sentiment is bullish, supported by the Dow Jones. However, our local market sentiment shows a moderately bullish trend. It might open with a gap-up start based on Giftnifty, which shows +150.

Nifty hasn't formed a proper structure, so if the market breaks the previous high, then we can expect a minimum of 21,744 to 21,804. After that, if it consolidates or breaks this level, the rally will likely continue. But as per the wave, its maximum pullback fib level is 78%. However, if the pullback rejects around 61% (21,804), then we could wait for reversal confirmation using the fib swing low to high. If this fib breaks 38%, then we could consider this a reversal for a bearish trend.

Alternate view: If the gap-up doesn't sustain or if it rejects around 21,652, then it might turn into correction. But here also, we will wait for confirmation; when it breaks the fib level 38% (21,533), then we can take a short position.