I am taking this opportunity to present my view on long term nifty chart. On Friday the index has given highest weekly & monthly close to date. It also made a new all time high of 8617.
As seen in the above chart, nifty has completed 100% extension of the Oct 2008 to Nov 2010 rally if calculated from Dec 2011 low around 8620. So we can say that nifty is likely to top out this month. However this is just a probability based on the Fibonacci extension. There is no other sign signalling that the uptrend is over.
In fact, weekly & daily charts are still showing strong uptrend momentum. Although on weekly chart, nifty has touched the up trending resistance line on Friday, momentum indicator in favor of bulls. If 8630 is protected this week on upside, uptrend is likely to be paused. But the confirmation of beginning of correction will come below 8420.
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