As per wave counts on the chart we are nearing a 5 wave completion from 9687. If you observe the chart we can see that the 61.8% projection levels of the move that started from 10,124 and 10,324 is at 10,482. If Nifty breaks below 10,400 initially and then below 10,325 level we can safely assume that Nifty has started a correction. Please note that we are trading in a 3rd wave on the long term chart so catching a top is a very difficult task, but around 10,480-10,500 is a reasonable level to anticipate some correction so watch out for it.
On a related note , I believe most of you might have read the news about Prince Al Waleed getting arrested in Saudi Arabia under corruption charges. He is the owner of Kingdom Holdings which has significant investments in a lot of prominent companies around the world(Citi Group, Apple, Twitter, AOL, Motorola, Newscorp etc). Most of the investment houses like Kingdom Holdings usually holds significant currency/commodities/ interest rate derivatives against their investments( sometimes they even hold multi-fold speculative trades in their books). If there is a change in management then most or all of these trades would be unwound(including sale of stock holdings) which has the possibility to create a mini correction/crisis in the short term. Keep an eye out for meltdown in any asset class in the coming days which could give us an early warning about any impending stock market correction. I might be getting overly worked up by a small issue but just be cautious as stock markets around the world are at record levels and even a small push might be able to create a significant impact.
Good Luck Traders!!!
On a related note , I believe most of you might have read the news about Prince Al Waleed getting arrested in Saudi Arabia under corruption charges. He is the owner of Kingdom Holdings which has significant investments in a lot of prominent companies around the world(Citi Group, Apple, Twitter, AOL, Motorola, Newscorp etc). Most of the investment houses like Kingdom Holdings usually holds significant currency/commodities/ interest rate derivatives against their investments( sometimes they even hold multi-fold speculative trades in their books). If there is a change in management then most or all of these trades would be unwound(including sale of stock holdings) which has the possibility to create a mini correction/crisis in the short term. Keep an eye out for meltdown in any asset class in the coming days which could give us an early warning about any impending stock market correction. I might be getting overly worked up by a small issue but just be cautious as stock markets around the world are at record levels and even a small push might be able to create a significant impact.
Good Luck Traders!!!