The markets lost over 300 points on closing basis to close at 10454. There are several assumptions which may need to change following last week massive fall.
1. It was assumed that this is a sub wave 4 fall and a last wave up was pending. Now this probability has the least likelihood.
2. Most likely, the entire up move from December 16 to Jan 18 is being corrected.
3. 2 possibilities, the first down move ended at 10276, we are heading to 10725 to 10829 region before the next down move commences.
4. The first down move is not yet over and we head lower to 10000-10100 range.
The wave 3 from 11117 to 10276 was extended, about 841 points so wave 5 can be a smaller wave, till 10118 followed by a 600 point counter rally.
Either ways in the near term we are headed up.
For traders, 10000-10100 is buying zone and 10700-10800 selling zone.
For investors, 10100 is a 1 buying zone and 9500-9700 second buying zone.
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