Nifty Analysis: Monthly Log ScaleThis chart presents three major cycles. Each cycle representing a decade. First cycle worked in 90s; second one in the first decade of 21st century and the third one in the second decade. Perhaps we are in the fourth cycle that would represent the third decade.
The first two major cycles ended with more than 62% percent correction of the entire decadal bull run. The third cycle (recent 2020) was an exception with 40% correction.
There are many ups and down, in each decadal major cycle, called the minor cycles. Every minor cycle also faced 40-62% correction of its impulse.
So if we assume that a top has been in place at 18600 high, then a 40-62% minor corrective wave might land up near 13000 or so. This level should be treated as a good investment zone for long term decadal run which can take Nifty much higher.
I am assuming that a top is in place but market may make multiple attempts to break the highs before it actually starts correction. Also this is a monthly chart so things might take time to show up some results. So be patient.
If you are feeling missed out in this rally then this is definitely not the spot to enter for longer term. Waiting for a better bargain is always good for making fresh investment.
Hope you understand my point.
Regards.
