Similarly, This time also as we can see the white area, Market had fall from 12400 to 7500 and the bull rally also continued till 1.6 times similarly like 2008-2009 and reach to 15400. Similarly , this time also we will see a 38.2% correction of current bull rally before it moves further.
The 38.2% of the current bull market also comes at previous high around 12400 and this is not a coincident but a well known Retracement Theory in Technical. Hence,that we will trade lower till 12400 before entering new bull run.
This is my personal experience what i have shared. so wait for some more time.
Now as market start recovering from lover levels I need to find a resistance level. So if the Nifty touch 6400 again means it reach till Fib Retrace 1 but when it moves beyond that there are other levels like 1.382, 1.5, 1.6 like that. So when you count the difference between 6400 and 2500 and multiply with 1.6 the level of resistance comes around 9180.
Finally when we have rally from 2500 to 9180 its about 6700 roughly points. Now when you draw a new retacement from 2500 to 9100 you will see that at 0.38% of correction comes near 6400.
Similar study i have done during the fall in 2020 and the recovery phase. Hope this could make you understand about the levels.
Note: The levels are not perfect numbers but near abouts.