Markets corrected in a big way today. Sensex and Nifty tanked nearly 2.5% in the Intra day trade. Sensex tanked nearly 400 points and Nifty was down by almost 125 points. Nifty futures started trading in discount as soon as Nifty spot tanked below 5170 mark. Huge selling in the markets from the FII side. Volumes in the F&O have also gone past Rs.1 Lac. It seems so, that the markets Bears are not at all in the mood to leave the Bulls this time. Last time also the Bears tried to get control of the markets, but the Bulls last movement buying, helped Nifty to close above 4850 levels in the month of Nov. In the month of Oct Nifty faced resistance at 5185 and corrected to make a low of 4538. Markets then rallied in the month of Nov & Dec to face resistance again at 5185 levels, made double top and corrected again to make a low of 4950.

Most Imp point.... Few weeks back I have mentioned that the Nifty in the last year May month, started falling like a dead pin. This year too the Nifty will find stiff resistance from the same levels. Nifty could find some support at 5000 levels. Close below the same will take the Nifty to its first support levels of 4980-4944 and then to 4850 levels.

Yesterday Nifty closed below the trendline (Chart). Nifty may find support at its 100DMA near 5000 levels. Consecutive 2 days close below the same will be very painful for the markets.