It was a reversal day.Nifty saw a sharp downmove of 70+ points .This should be correction of 725 point rally, since 5 waves on daily chart appear to be complete.
Important points for today.
1.Nifty downmove by 1.3% with 0.52 breadth
2.This should be Wave A of the correction.(Expected correction is ABC Zigzag).
If todays move is correction of the last 40 days rally , Nifty should move down to about 80% of its target in next 2-3 days before showing any positive upside movement.
I am assuming 80% of target, since WaveA of correction usually goes to 60-80% of correction.Also this correction should be of 8-10 days.
If it is the reversal of the Bull market since March09, Nifty downfall should increase in momentum gradually, and we should see consecutive lower weekly closings with potential target of ~4000 in next 2-4 weeks.
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