right now three levels are important 4209(100 dma), 4100(previous low and 50% ret of rise from 3554 to 4647) and 4065(200 dma).

if this is also broken then two levels to look out for are 4010 and 3972.

Lastly, the log scale multi year nifty trend line support is near 3860(which is also 38.2% ret of total rise from 2595.65 to 4647) for the august month. It should be noted that in march the nifty had bottomed out at 200 dma which was very near to 38.2% ret of the rise from 2595.65 to 4245.

if a pullback occurs, then chartical levels on upside are 4215,4245,4300,4330,4365 and 4376(13 dma).

4354 is the 38.2% ret of the total fall from 4647 to 4171.

the nifty closing above 4376 is good for upmove, a closing above 4465 for a couple of days might resume the fresh bull run.

the technique used to determine bottom formation discussed yday was expected to complete and has 2-3 days of std deviation. But looks like US mkts are still falling and can have major impact on the downside going tomorrow. Here 4100 and 200 dma are vital supports, we are already trading below 100 dma. The target for Wolfe wave(discussed here earlier) and 200 dma are quite similar now and nifty can reach there in a single days fall. The subprime and its after effects alongwith yen unwinding is pulling liquidity from emerging markets.

a technique i used gave correct top and mkt started falling thereafter. And according to the same technique, the correction might well be over now. how true or false only time will tell.

multi year bull run support