The chart shows the support of 8820 and 8950 depends on which low we take and if someone is an elliot wave he mit take the one which matches his wave count but these are the two possible levels so taken the range.
one can use simple maths calculation 28/09/2001 low== 2594 high on 31/05/06 == 12671
take 38.2 % of this difference and subtract from 12671 gives the value of retracement .
As specified in earlier views in panics the level of 9600 will be broken and 9250 should provide support and we did ee a bounce of 500 odd points. At that time to extreme panic to take it to 8900 and below 8800 very scary for bulls rather bears party and i still maintain 8800 last hope.
buy on dips is wat i say coz markets may try knocking 10k in the days where very short term maybe intra profit booking should be done.Ideally after knocking 9800-9950 markets should pull down and consolidate before a clear direction is seen by end of this month or in 1st 2 weeks of july.
so depends whether your comfortable at current levels coz i still dont see clear directions need confirmation of some trading sessions to ensure the correction is over.i had specified extreme panic level of 8900 and below 8800 scary and it still holds below 8800 it get scarier so thats the stoploss so try buying closer to it.
See this is wat happens in bearish scenarios people wid hardly any knowledge come up wid some crap predictions and reasons.
I may not be an old hand but simply put wat i have learnt is markets are always correct u may be wrong so the correction is correct and was bound to happen and so stop speculating.
well is there anything wrong wid the markets boldly no but wat is rit abt the market is if it has to move frm 8k to say 20k it technically needs to gather strength by correcting a good 38.2% or 61.8% frm the high in a rally u can see the technical justification here wat happen on 17th may given in the chart below
so same would happen this time support the 38.2% retracement from 17 th may to current 12600 odd is at 9500-9600 and 61.8% from october is at 9600 so this is wat i conceive as the max and better would be a bounce back frm 10200 odd i.e 38.2 % frm oct so these are levels to watch out for .
basically the market has given a huge breakout frm 8000 levels which implies a rally for next 8-13 yrs and all these blips and falls gonna be a part of it so make up your mind for how much time can u have patience and play accordingly
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hey if u check this chart the fall on 17 th may nearly kissed
the 61.8 % correction level and bouced back and similar has been the case for all major falls since 1979 on the sensex. also if u check that all markets around the world were down badly and they did not have elections.
also if u can take the pains to read about fibonacci ratios and analysis u will now
why am i saying so and have won technical paper contest on the same topic so i have done a lot of analysis on the fibonacci series just do it its interesting even da vinci cod e has 2 pages on it
also elliot wave analysis has it basis in fibonacci ratios. Well u may feel taht its a coincidence but how many times i have seen 2 -3 big previous falls on the sensex and bounce bakk frm 61.8% level so coincidence cant be again and again
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