>7 Reasons Why Nifty would go to 3800 and Sensex 12800 (EMKAY)

■ Bulls exhausted; false breakouts globally signal an end to this rally; we hence expect a large correction, which is at least a 50% retracement of the entire run.

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Are you ready for 3800 Nifty?

■ Multiple trend lines (Fan line) breaks across the world.

■ 5-wave impulsive moves complete; Nifty and Brazil Bovespa remain classic examples, FTSE, DAX, CAC also look complete.

■ ‘Bearish Outside Engulfing’ month for BSE Sensex (CMP-16357, TGT-12800), Metals (CMP-15962, TGT-10500), Autos (CMP-6953, TGT-5000) and Cap Goods (CMP- 13125, TGT-10000).

■ Ending Diagonals/Bearish Wedges visible on many indices.

■ Momentum sell offs after negative price/momentum divergence.

■ Dollar to further spook the markets, DXY bullish reversals in place; target 83-84, INR heading back to 49-50.

To read the full report: NIFTY AND SENSEX