As per my analysis Nifty has started the C wave of a correction which could take Nifty all the way down to levels closer to 9,200. The possibility that wave C extends 1.618 times wave A is very high at the moment as wave B could only retrace 0.382 of wave A. I expect this move to be very sharp and violent so be very careful in buying before seeing the bottoming out signals. There is a high probability that we could see those levels in this month itself so expect action packed days ahead. Blue line represents the market trajectory if my assumptions are correct. Long term investors should be ready to deploy cash at levels closer to 9200.
The secondary possibility is the only hope for the bulls at the moment which assumes the consolidation between 10,300-10,640 was a wave 4 and Nifty is close to forming a wave 5 low after which Nifty could give a good pullback. Red line represents the optimistic scenario.
Please consult your financial advisers before making any decisions.
Good Luck Traders !!!