Old Analysis (28/2/2015) - Indian Index - NSE Nifty 50

Chart 1 is the monthly chart of NSE Nifty. As is seen on the chart prices are now touching the upper trend line of the upward sloping channel drawn in red. The lower trend line of this red channel is drawn by connecting the 2009 bottom and the subsequent significant bottom/s in such a way that the prices don't fall below this trend line.

chart 1

The daily chart below (chart 2) shows very clear 5 wave impulse waves from the lows of August 2013. The 5th wave of this five wave impulse looks like further subdividing into five sub waves and may be forming an ending diagonal pattern. If we look at the Fibonacci ratios, wave 3 is about 1.61% extension of wave 1. 8900 is the 38.2% extension of wave 0-3. The whole rally from the lows of August 2013 may be very close to completion.

chart 2

Conclusion

NSE Nifty seems to be very close to starting a very significant correction. At the very least the correction can take the prices to about 8000. But this is a very optimistic outlook, there is a high probability of a deeper correction, since, major global indices also seem to be on the verge of a significant correction.