"Good morning, friends! Here are the directions for April 18th:
Nifty and BankNifty both consolidated in the previous session, so structurally, if the gap-up doesn't sustain then we can expect further consolidation for correction.
On the other hand, if the market initially takes a pullback, the 23% Fibonacci level will act as crucial resistance. This means that after the pullback, if it rejects around the Fibonacci level of 23%, it will continue the range between the previous bottom and the recent high, and it may undergo correction. On the other hand, if it breaks or sustains (around fib 23%), then we can expect further continuation, and we can fix our next target at 38%.
If we want to simplify it, this is a range market, so we can try range breakout entries."
Nifty and BankNifty both consolidated in the previous session, so structurally, if the gap-up doesn't sustain then we can expect further consolidation for correction.
On the other hand, if the market initially takes a pullback, the 23% Fibonacci level will act as crucial resistance. This means that after the pullback, if it rejects around the Fibonacci level of 23%, it will continue the range between the previous bottom and the recent high, and it may undergo correction. On the other hand, if it breaks or sustains (around fib 23%), then we can expect further continuation, and we can fix our next target at 38%.
If we want to simplify it, this is a range market, so we can try range breakout entries."