Nifty had a late afternoon selloff with -ve breadth and moderate volumes,retracing about 60% of the gains made from lows of 4984.Important points for today
1.Nifty moved down by 1.6% with 0.25 breadth.
2.26th day since the high of 5399 hit on April7th,2010.
The previous swing low of 4984 is also the same as 200DMA for Monday.So if Nifty breaks the low of 4984 on monday, that would be the first time since April2009, when Nifty crossed above it.That could spell weakness and Nifty could rapidly fall towards 4500 (15000 sensex) levels.For the fall scenario,I anticipate Nifty to fall sharply , then bounce and then move down towards down targets hit earlier.
The other scenario is that Nifty either gaps up on monday and starts with its wave3 OR it moves down to around 4900 levels and then starts to move upwards.
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