#Banknifty directions and levels for January 27th:

> The Nifty is showing a long gap-down start. If this sustains, structurally, we can expect the correction to continue with some minor pullbacks. Based on the wave structure, this long gap-down could extend into the 3rd sub-wave of the correction. Typically, the 3rd wave is the longest leg of an impulse, so we can expect a prolonged correction. This is the structural sentiment.

> On the other hand, the budget announcement is just a few days away, and experts are expecting high volatility. This means there is no clear direction—if the market goes down, it could recover at any point, and if it goes up, it may eventually reverse. Therefore, the sentiment is a bit difficult to predict.

In light of this, we can apply a simple trading method:

> as long as the 38% Fibonacci level in the minor swing holds, the correction is likely to continue in the current direction. If this level breaks, we can expect a reversal.