#Banknifty directions and levels for the June 27th.
Yesterday, Bank Nifty continued the rally. Both structures have the same extension variation, so there are no changes in the market sentiment. Today, GiftNifty is indicating a slightly negative start. If it opens like this, let's look at what might happen in Bank Nifty.
>Structurally, it's a bullish market and both have an extension. According to the extension, if the market opens with a gap-down, it could retrace a maximum of 23 to 38%. After that, if it finds support there, the rally will continue with minor consolidation.
>However, the probability of a rally today is less compared to yesterday, as the sub-waves driving yesterday’s rally are now over. If the market finds support at either 23% or 38%, then it may close within the range.
>As per the wave structure, it could be in the 4th wave.
Alternatively, if the correction becomes aggressive, we should wait for confirmation. If the market declines sharply, it may consolidate around 38% or 50%. After that consolidation, if it breaks the previous low, we can expect the correction to continue. Otherwise, it may maintain the bullish sentiment.
(Note: If the market initially takes a pullback and breaks the previous high, then the rally may continue further.)
>Structurally, it's a bullish market and both have an extension. According to the extension, if the market opens with a gap-down, it could retrace a maximum of 23 to 38%. After that, if it finds support there, the rally will continue with minor consolidation.
>However, the probability of a rally today is less compared to yesterday, as the sub-waves driving yesterday’s rally are now over. If the market finds support at either 23% or 38%, then it may close within the range.
>As per the wave structure, it could be in the 4th wave.
Alternatively, if the correction becomes aggressive, we should wait for confirmation. If the market declines sharply, it may consolidate around 38% or 50%. After that consolidation, if it breaks the previous low, we can expect the correction to continue. Otherwise, it may maintain the bullish sentiment.
(Note: If the market initially takes a pullback and breaks the previous high, then the rally may continue further.)