The markets are euphoric and nobody really wants to listen to anything which suggests a slide. Analyzing Nifty on the long term charts, a sharp correction has been seen after Nifty hits seven consecutive record highs on the quarterly charts. The intensity of the correction forces the Nifty to break the low of its previous white candle.
In the April-June 2006 quarter, Nifty retreated sharply after rising for seven quarters while in Jan-Mar 2008 quarter, the correction unfolded after the Nifty hit its sixth record consecutive high on a quarterly basis.
Should the market correct this quarter, based on the current levels, we could see the Nifty fall to its low of previous white candle, which stands at 5225
The Nifty has just completed seven quarters of gains and is attempting a new high. Will it break past and create a new high or will history repeat itself? The coming quarter sure promises to be interesting indeed.
