As you see this chart, I have drawn 4 momentum lines which have been deciding factor in past 12-18 months. In the past whenever Nifty has broken these momentum lines it has corrected anywhere between 10-12 %, as you see currently we are trading above the 4 th momentum line which is around 5750-5800 mark. Nifty has corrected almost 5% from the top since last few days, this sharp fall may halt around 5920-5940 as it has multiple supports/bottoms ( see shaded region on chart) around this region, break and close below this 5920-5940 support may lead to Test NO. 3 of our 4 th momentum line which is around 5750-5800. Fibonnaci retracements also point out that 5750 -5800 will act as a good support. It is advisable for investors ( especially those who missed entire rally from 5350 to 6350) sitting on cash to deploy atleast 20% cash @ 5920-5940 and 30% cash @ 5750-5800.
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Have a nice day
Regards
Ankit
Excellent chart. Probably best on the net on nifty by anyone. Congratulations.
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