==>> Nifty retracement levels at 4315-4325

It's raining like Cats and Dogs in the Indian markets. FIIs and the traders have started unwinding of their long postion after a long time. The Indices saw huge correction today. We saw sharp correction in the frontline stocks, that lead the Index fall nearly 3%. Sensex opened up flat, for most of the day remained marginally down, but in the later on witnessed some sserious unwinding of the long position, that lead the Index to fall down to 14447 levels, before closing at 14490 levels, down by 435 points or 2.90%. Nifty made an intraday low of 4332, down by 161 points or 3.58%, and closed at 4356 levels. As mentioned in my last blog that the Nifty has resistance at 4553 levels and the close above that will only take the Nifty to continue with its rally, but clearly mentioned also that if not crossed than the markets may come down again.

Since the start of the last week, it was clearly mentioned that the profit booking at every levels has to be done and the correction is expected and that too heavy. The readers may check themeselves the stock prices, at the time of the peak and now. The % of gain & fall.

In the weekly char the Nifty chart has made a doji pattern. That makes more clear that the correction was pending. Today Nifty has broken down below the 20DMA, technically Nifty may fall down to 4325-4315 levels, that being the 50% retracement level from the all time high to the low which was made in the month of Oct i.e 6357 & 2252 respectively. MACD was also showing signs of correction. Metal stocks and the Real Estate stocks witnessed some serious selling. I AM GLAD, THAT I HAVE INFORMED THE READER OF THIS BLOG, ABOUT THE CORRECTION WELL BEFORE THE ACTUALCORRECTION, when most of the technical analyst saw markets to rally further without any correction. The Sensex is already down by 1000 points from its recent high of 15600. Nifty is fallen down by 4693 to 4332 levels, down by 361 points.