Nifty Monthly - I think this is a repeating pattern. Earlier multi-year consolidation was around 6200-6400 as a top between 2008 to 2013 (5 years) which was taken out in the Modi rally. There was a healthy and deep correction in 2016 after making a top of 9000. The correction was deep and went down to 7000 levels which is little over 22% correction from top. However, the previous resistance of 6200-6400 was not tested and the correction went to a 10% higher level than that (7000).
Then the 9000 top was a resistance zone for 2 years which was taken out post demonetisation and a top of 11800 was made (30% from resistance of 9000) and if correction is like previous time, a 20-25% from top would be somewhere between 9500-10000. Again, we may not test the previous resistance of 9000 the same way the correction from 9000 never tested 6400. I presume we will definitely test the long-term Nifty trendline sloping upwards sometime in the next 6-8 months.
