Nifty dropped below yesterdays low and broke below 5950 but later bounced back above 6000 levels with moderate volumes and -ve breadth.Important points for today.
1.Nifty up by 0.5% with 0.37 breadth.
2.12th day since the highs of 6284.
3.4th weekly down close.
Nifty's 2nd downleg from 6150 completed today.Nifty may have entered a short term up now for 2-3 days,and the upside can stretch upto 6150.Both downlegs have lasted for 3-5 days.I expect the 3rd leg to be also of the same duration ie 3-5/6 days.But for bigger fall to happen and Nifty to breach 5950 level decisively ,momentum will be needed.Since Nifty has breached it today and done hourly close below 5950,I expect that this level has fallen now and its only a matter of time before Nifty tears apart this level.I would look for momentum in the next downleg of Nifty to determine what possible levels could Nifty target.With 4th weekly closing below the highest weekly closing,I see this as a weekly correction.Since the time taken for this correction is already 4 weeks,I expect the correction to not cross the 15-20% zone ie 5000 levels.
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