#Nifty directions and levels for August 1st

Good morning, friends! 🌺🍬 Here are the market directions for August 1st:

Global and Local Market Overview

In the previous session, the US market experienced a solid pullback, suggesting a moderately bullish bias. Our local market is also maintaining a moderately bullish trend. Today, the market may open with a neutral to slightly positive start, as GiftNifty is indicating a 40-point positive move.

In the previous session, both Nifty and BankNifty were in a range-bound market, but their structures differ. Let's take a closer look:

Nifty

Previously, we discussed that Nifty is in sub-wave 4. If it breaks the consolidation, we could expect the 5th impulse wave. This may happen in today’s session due to the gap-up start indicated by GiftNifty. If the market opens above the previous high, we can expect a move to a minimum of 25029 to 25067.

We have already discussed this sentiment in the previous session. If the breakout has a solid formation, the rally will continue. On the other hand, if it does not, it will turn into a correction. Today, we will follow the sentiment with a slight revision. that's

Current view:

>If the gap-up sustains and breaks or consolidates around the resistance level (25029-25067), the rally will likely continue.

>On the other hand, If it doesn’t sustain, it will either form an ending diagonal or continue the correction if it breaks the channel.

>The difference between the diagonal and channel breakout is that a diagonal indicates the bullish bias will continue with minor pullbacks, while a channel breakout suggests a clear reversal.

Alternate view:

The alternate scenario is similar to the diagonal pattern. If the gap-up doesn’t sustain, we can expect an initial correction of 38-78%. After that, if it finds support at either the channel bottom or the 78% Fibonacci level, the bullish bias will continue. Simply put, it’s a range market. If it breaks the 78% Fibonacci level, the correction will likely continue.
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