#Nifty directions and levels for May 16th.
Good morning, friends! 🌺🍬 Here are the directions for May 16th:
The global market is indicating a bullish sentiment based on the Dow Jones, while our local market sentiment suggests a moderately bullish trend. It might open with a gap-up start, as suggested by GiftNifty, showing an increase of +120 points.
Nifty minorly retraced after the gap-up start in the previous trading session. Structurally, we have two options. The first one is the GiftNifty indication of a gap-up start, so if the gap-up sustains and breaks the level of 22337, we can expect further rally continuation. In this scenario, if it forms a solid green candle structure, then we can expect a sharp rally followed by a range breakout. Otherwise, it may go into a diagonal pattern structure (consolidation pattern).
Alternatively, if the market rejects around the immediate resistance level, initially we can expect a 23 to 38% minor retracement. If it finds support there, it may undergo some consolidation for rally continuation. This means if it doesn’t break the minor Fibonacci level of 38%, then the market will maintain the bullish bias.
on the other hand if it breaks the minor Fibonacci level of 38%. then we can expect a minimum correction of 78% to the next level of 1.27%. Structurally, it could be in a flat variation. After that correction, if the market finds support at the 1.27 extension level, then it may turn into a bullish bias.
The global market is indicating a bullish sentiment based on the Dow Jones, while our local market sentiment suggests a moderately bullish trend. It might open with a gap-up start, as suggested by GiftNifty, showing an increase of +120 points.
Nifty minorly retraced after the gap-up start in the previous trading session. Structurally, we have two options. The first one is the GiftNifty indication of a gap-up start, so if the gap-up sustains and breaks the level of 22337, we can expect further rally continuation. In this scenario, if it forms a solid green candle structure, then we can expect a sharp rally followed by a range breakout. Otherwise, it may go into a diagonal pattern structure (consolidation pattern).
Alternatively, if the market rejects around the immediate resistance level, initially we can expect a 23 to 38% minor retracement. If it finds support there, it may undergo some consolidation for rally continuation. This means if it doesn’t break the minor Fibonacci level of 38%, then the market will maintain the bullish bias.
on the other hand if it breaks the minor Fibonacci level of 38%. then we can expect a minimum correction of 78% to the next level of 1.27%. Structurally, it could be in a flat variation. After that correction, if the market finds support at the 1.27 extension level, then it may turn into a bullish bias.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.