a base formation or a distribution phase again ?

a strong up move took place from around 2400 nifty levels,but nifty could not cross 3223 on closing basis,but the following fall was having a very lesser speed and venom in it,even with bad news still flowing from us and even other world economies,nifty didnot break october lows,and took support at 78.6% of the rise,and as i mentioned with a lesser venom,this probably could be a very good base formation process ON ...naturally our markets are not going to see a steep bounce back suddenly, but if october lows are not broken till jan -09,,,i think we may well have seen the bottom.alternatively now onwards if markets cant hold october lows ,and if even 2200 is broken ,we will see nifty tobe touching 1587......personally i think this will not happen,and slowly but steadily india markets will start deviating from us and europe economies...as there is a very very real differnce between the PHONY ECONOMY of the usa and the real economy of india..after all the usa investments in india has seen a significant downside, so once this withdrawal process stops, the dollar will start cracking down and that will be the real turning point for india markets

first good signs

where are we headed ?

2863 and 2746 are two supports for nifty...if these levels are not broken and if nifty closes above 3223...4100 is also possible...BUT..IF 2746 IS BROKEN ON THE CLOSING BASIS WE MAY SEE OCTOBER LOWS AROUND 2200 AGAIN