Nifty 500 Index Analysis. As on 29 March 2021. CMP 12,148
Fundamental reasons can be attributable to the recent correction in the last few weeks.
As chartists, instead we look for technical reasons, which in this case is that on the monthly chart, price has clearly tested the upper channel line that has caused it to pause / correct.
We suspect this is a temporary correction and new highs are on the cards.
Elliott Wave Count : A wave 3 top of minor degree is likely in place in end Feb 2021. Price is likely in a 4th wave correction that could still extend to the 11,200 ~ 11,500 level. It is preferred that price does not remain below 11,000 at the most for any length of time, as that would open up the potential of a larger correction.
For now, the 11,200 level should act as a concrete floor for price. New highs are eventually expected above the Feb 2021 high of 12,816.
On the 3 day chart, the 10 EMA remains above the 20 EMA signalling the intermediate uptrend is intact.