Hi Ahmed
As per consensus, start of the present bull run is counted from May 2003 when nifty was at 924 or so and at the so called peak of bull run it was at 3700 or so representing about 400% rise from the hase of bull market. If a retracement has to take place , not as a correction but as a bear market then I feel it should retrace 33%-66%-133% respectively. 33% represents about 916 point correction of the rise. i.e.2700. 66% correction represents about 1832 . That means after 66% retracement Nifty should be at 1900 in a confirmed bear market. At 133% correction it should be well forget it . their theory will break down by that time and they will all be in Agra while admiring Tajmahal.
It had about 33% correction(actually little more than that). But then it has rallied from the low. Even in bear market such shortterm rallies lasting few days to one or two months is not uncommon. So the jump could be a false trend unless confirmed by breaking the peak of the bull market.Remember Higher pivot lows . It will be making that only and all will rush to sell. It it crosses that peak then it is a fresh uptrend in bull market as it would form Higher pivot high.
The Bull trend will not be negated unless it takes out something 2632 conclusively on increasing volume.Below that we will be in doghouse.
Well that is what I understood from all the discussion. May be my understanding is wobbly or downright wrong.
My belief is that we have seen the bottom and are not to see it again in near future. The market is entering a volatile period and then a consolidation period with less volatality with lower volume on downside and higher volume on upside before we take the peak. If it is just opposite then you know what Baron would say. Milestone 14 on jdm's chart in the fishes and loaves of Saint.
During Bear period strong hands accumulate the stocks and weak hands exit. This reduces supply while prices go down. At some point frustated market participants are going to say I can not live without you and jump straight away and prices will see a jump. This happens after the bottom forming is complete. The stock is ripe for jump. Thats the start of fresh bull market.
Well we will witness all these things through the able hands in this forum but after another10 years.Meanwhile we shall see cycles of ups and downs.
Pankaj