The DJI made an island reversal with the gap down yesterday. If that gap is not filled and the index closes below the trend line shown, then weakness can become more pronounced.
A 3 wave countertrend move finished wave 4.
Nifty corrected in 3 waves for wave 4 and made a double close key reversal bar today. We are holding short positions with a stop loss of today's high. Targets below 7000.
Mannapuram finance retraced 38% of wave 3 during its wave 4 which most likely ended two days ago.