February 5, 2018 / 4:55 AM / 3 months ago

BUZZ-Chart suggests deeper correction for India's NSE index

** Chart for NSE index shows it has retraced after facing resistance from the upper trendline of a 10-year long ascending trend channel reut.rs/2E0XL8o

** Retracement from the trend-line resulted in deeper corrections in 2010 and 2015

** Monthly RSI also shows bearish divergence from the index and has cut below the oversold level at 70

** A study of wave pattern shows correction was seen from 150 pct projection level of wave 1, suggesting wave 3 would have come to a closure and a corrective wave 4 would have started

** Previous wave 2 in the cycle corrected the uptrend of wave 1 by about 50 pct, a similar move this time may lead to a correction up to 9,533 points

** Study of Fibonacci levels shows that in the near term index has support at 10,542 and 10,398 and resistance at 10,693 and 10,855 reut.rs/2EFkat7

Reporting by Gaurav Dogra

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