Nifty has retraced 400 points in the last 10 days, since the top it made on August 2 at 10130. The geo-political developments are likely to stretch for a few months till things sort out themselves. In any case, Nifty was running ahead of parameters, both technical and fundamental and required a bit of cooling down.
This probably marks the beginning of long awaited major correction for an up move which started in January 2017, taking Nifty from 8,000 to 10,100 a staggering 25% in about 7 months, an astonishing 50% annualized return by the indices.
The Nifty is likely to retrace to 8900-9000 levels, which would be a 50% pullback of the entire up move since the beginning of the rally which is likely to last three months till October 2017. Though, there are two major support levels at 9700 and 9250 but it remains to be seen if they can hold for Nifty to make a reversal.
Here, is the visual summary of short trade on Nifty from 10100 levels which has already given handsome profit for the short traders.
