Nifty has been trading at very high valuations of 29+ PE values and failed to sustain the breakout after the election results. Since then it is continuously sliding down toward the gap-filling level around 11400. If this level is broken down, which looks likely, a coorection till 10600 levels is the next level of coorection. With the GDP in the last quarter growing at only 5.8%, there is a mismatch between the correct market price and the real valuation. A coorection of 10-15% from the highs would be a good level for reentry.
Disclaimer – stock market is subject to market risk. This analysis is the opinion of the author and for educational purpose only. Do your own analysis before investing money.