In our earlier post July 21, 2015, we had indicated the possibility of Nifty retesting the recent lows made during June.
Click here for the post : http://eqtrend.blogspot.com/2015/07/nifty-to-retest-recent-lows.html
Nifty has panned out exactly as anticipated except that the it did not retrace to 8800-8900 levels, which we had assumed, based on the trend position. Nifty lost significant strength achieved during the up move quite rapidly and only managed to touch 8643 levels which is 61.8% retracement of the entire down move from 9072 to 7949.
With the A-B-C correction playing out, wave B seems to have been completed at 8643 and we are witnessing wave C down which may target 7500 levels in a five leg down pattern. However, in the event of Nifty crossing above 8643, the setup may be negated and Nifty may resume its upward journey.
With adverse news flow on the political front and weakening of INR, the FII's may press the sell button, which may lead to Nifty breaking some significant support levels in a rapid down move.
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