Nifty going back to 4000?

 

This is the chart that I prepared on 18th January when NIFTY closed at near the 52-week high 5275, I shared this chart with some of my close friends as I did not had this blog at that time. I know people who made killing money by buying 5200 put @ just 40 bucks which touched 250 within 3 days…

This was the content of my write up…

Hope you had a great time making money in one of the biggest rally in recent time but let me warn you that we have possibly done with the rally.

This is my prediction and we are going to correct from here on, may be a last attempt to touch around 5400-5500 in NIFTY but then we are going to fall like a stone in coming months.

Here is the monthly chart of Nifty which predicted well in advance the crash of 2008 on March 2008 with a target below 3000. Similarly the same chart was able to predict in March 2009 that a big rally is coming with a target above 5250 which we hit already.

So now what, there could be two things that can happen from here on.… we correct right here and fall to test near 4500-4700 and continue the further up move above 5500 to test around 5800 or we go and test 5500 level by budget time and then fall sharply below 4150 by November 2010 or even before that.