Oct14 Update

Nifty gapped up only to selloff at higher levels and closed below 6200.Important points for today.

1.Nifty down by 0.9% with 0.48 breadth.
2.101st day since the lows of 4786.
3.31st day since the lows of 5350.

Nifty could not sustain at higher levels and sold off at 6280+ levels.Yesterdays breakout appeared to be real and headed for new highs above 6300 but todays correction is somewhat more than what I would fit in a breakout scenario.I would expect that Nifty will resume its upward march in 1-2 days.But if Nifty continues to go down and closed below 6090 then Bearish scenario of medium term reversal will have to be looked on more closely.In the bull case scenario, todays selloff shows that volatility is increasing with higher levels indicating near to the top level.Tomorrow is weekly closing and would be interesting to see where Nifty will close.For the past 10 years October has seen atleast one selloff/pullback as last week of october has some seasonal effect.Since we are approaching a top ,a selloff/pullback is very much in the offing now.