Nifty broke through the crucial 10815 level by the way of a gap formation and very quickly took out the 10557 level (mentioned in our last report) . The subsequent fall has been quite swift. This fall now seems to be part of an A-B-C irregular flat correction. Chart Below:
The gap formed on break of 10815 seems to be a measuring gap and it signals that this fall might extend to at least 9815. Hence the current weakness in the market is likely to continue. Important Fibonacci measurements for wave C as part of a Flat correction includes the 1.272 Extension level at 9511 & a deeper 1.618 level at 8900.
Overall it’s likely that the fall should extend to at least the 9815 level and possibly towards the 1.272 extension level at 9511. A Fibonacci Time level occurs on October 23rd where time-wise wave C would equal wave A. So there is a possibility we may see a bottom formation around the time if we achieve our price targets by then.
Important short term resistance levels: 10600/10755
