We've witnessed a correction in Indian stock market in last few days. Nifty has come down considerably from its all time high formed few days back. Fundamentally, we can talk of asian market correction, high inflation figures, EURO problem etc. But such news are always in the market. Without going into these discussion, let's see the technical chart of Nifty to get its target.
Leave the number of colored lines in this chart. Only two lines are important at this time.
1. Kijun-Sen of Ichimoku: Although the price was rising in last few days, but the kijun-sen line was flat, thus not supporting the bull run. Result, the gravitational force of kijun-sen will attract the price and Nifty will kiss this line, which is currently around @5550.2.
2. Double smoothed stochastic: On the bottom of chart, the stochastic line is in over-bought mode. This will come down below, resulting in Nifty correction.