Nifty has started the upward correction of the entire move down from 5300 to 4640

Nifty 10 mins:

Nifty Daily chart:

Nifty on Friday failed to move up thereby living upto the Friday’s negative expectations! On 10 mins chart, we can see that the short term trend channel is broken and prices have started the upward correction of the entire down move from 5300 to 4640.

The previous 4th wave as shown comes near 4910. We should correct atleast for a week in an overlapping structure. As long as prices remain above 4640 we stay bullish. The up going trend is already exhibiting an overlapping structure as a correction opposite to the higher degree trend should behave. This also confirms the intermediate trend has turned down and we are just correcting extremely oversold condition over short term.

As we mentioned previously, a move above 4780 would help Nifty inch higher towards at least 4900 or even higher towards 5000 now. While a fall below 4638 would negate our expectation of a short term pullback.