Nifty has fallen swiftly. The DII's have been absolute sellers in the market throughout this last leg (c-leg) of the rally. FII's have been shorting the Futures market for last 4 days and their buying has been tepid in the cash market during the same period. The correction could not retrace the last leg of rise from 6079.2 in faster time suggesting the move is corrective only.
Now, what is the present down move and how much downside more ?
Possibilities are high that it may be the d-leg of a triangle (Probably extracting). b-leg triangle fall was for 8 days and the move was 441.55 points. If the present down-move is more than 441.55 (Till now 222 points) points it may hint at an extracting triangle and then it may be very bearish and Nifty has already topped out at 6342.95. Now we need to see the 5th / 8th (Fibbo numbers) day reversal happens or not and how much more will be the fall.
IIP data is coming on Monday evening and market may show it's true color on Tuesday. We are having an oversold market and bounce is not ruled out but Sell on rallies has been signalled by the market by weekly closing hence important resistances may offer selling.
Nifty Future and spot has significant support at 6100-6150, weekly close below only can give some confirmation.
The good point is that structure will be clear in a day or two.
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