#Nifty Directions and Levels for August Last Week.

Nifty and Bank Nifty Directions and Levels for August Last Week.

Global Market Overview

In the previous week, global markets experienced a long consolidation. By the end of the week, they closed with a solid green candle (based on the Dow Jones). Structurally, this indicates a positive bias; however, some events are on the horizon. If this support holds, our market will also take a bullish cue.

Nifty

Despite the market closing positively, there was significant consolidation. Structurally, it is a bullish market, so the upcoming session may see a slight increase. After that, if it encounters resistance around the minor supply zone or the all-time high, it may retrace by a maximum of 23% to 38%. Structurally, it shouldn't break this level. Once it finds support at this level, the rally will likely continue to the level of 25,232, which is our first variation.

Alternate Variation:

The alternate variation also resembles the current view, but there is a small difference that I will explain:

- If the upcoming session takes a negative bias, it could result in a correction of 23% to 38% in the minor swing. After that, if it finds support, it may continue the rally, which looks similar to what I see in the current view.

- However, if the correction breaks below the 38% Fibonacci level, it may turn into a correction phase. Why? Because the market is currently consolidating around the 78% Fibonacci level. This is a major resistance level for a ranging market as well as for a zigzag correction (Elliott Wave pattern). Once the market starts to correct from there, it may reach a minimum of 78% in the swing low for the minor swing. This is why I mentioned that.