NIFTY: ANALYSISWe can observe on the monthly chart that market is moving up in waves.
There are up waves and there are down waves. Up waves are larger than down waves, so it is an uptrend.
It can also be seen that after every up wave there is a correction of the order of 40% to 50%
Based upon this historical data, we can expect a correction of this magnitude in the current down wave which started Oct 2021
Potential Targets could be
40% correction - 14167
50% correction - 13060
On the lower chart you can observe that RSI went near 30 during major corrections and near 40 during minor corrections. Assuming that the current correction is just a minor correction, I would expect RSI near 40 when the market hits 13000-14000 targets. That could be good level and time to start investing in the market.
The RSI scenario on the weekly chart would be 30 during minor corrections and 20 during major corrections.
Above targets are based upon the historical data. There is no perfect way to predict market tops and bottoms but buying low has always been a good strategy for quick returns through investment.
Do like, share and comment for more such ideas in the coming days
Regards
