Oct15 Update

Nifty continued with its selloff and closed below previous low with moderate volumes and -ve breadth.Important points for today.

1.Nifty down by 1.9% with 0.33 breadth.
2.102nd day since the lows of 4786.
3.32nd day since the previous swing low of 5350.
4.2nd consecutive weekly close in the red.


Nifty's sustained selloff of 2 days and the break of previous low opens the scenario of Nifty having entered medium term reversal ie correction of the rally from 4786. There are multiple wave count options even in bear scenario.My probable bear scenarios say that incase of medium term reversal,Nifty may keep going down towards 5200 probably by next week or early next-next week.Nifty may not bounce to give a shorting chance at this stage .A pause may be there inbetween till Nifty reaches its final target.Also 2 consecutive -ve weekly close increases the probability that Nifty will cut down sharply next week.Since Nifty has not made a new high,I would expect Nifty will bounce after completing the correction and make a new high above 6300.So Correction that may come should be a buying opportunity.