Is it the best time to invest?

Finally, the world markets decided to take a plunge from their new highs of the year 2010. I strongly believe this is a short term correction. After a sustained move-up it makes a lot of sense for a decent correction - nothing wrong with it :-).

From the Minifty Futures chart below: I see it is very unlikely that Nifty would fall below the 5730 level. A breach of the 61.8% retracement level would imply a change in the main trend that is UP [in a longer time frame]. Also the fact that there is a window around the 5650 ish level will act as a strong support. Even if these levels are breached, I would expect "very strong" pullbacks. Effectively providing you an oppurtunity to go long and again short.

For BNF, I am not sure what to consider as a base, so not using Fibonacci retracements. I hope the window again might act as a strong support. 

On the other hand, both NF and BNF are currently sitting at crucial support levels. Following are things that might pan out. 

1. Markets end the correction here and start the next leg of rally fuelled with the shorts closing for F&O closing on Thursday.

2. Markets continue to go down until the F&O closing this Thursday. 

3. EUR/USD seems to have had a pull back implying that USD is getting weaker, which further implies equities might bounce back. 

3. Next 4 days of trade will decide the market direction for the last month of the most spectacular year for the world equity markets. 

For investors, I would say this is a golden oppurtunity to invest in bluechip companies. I am of the opinion that we might never see the current stock prices until we hit the next global disaster. Be smart don't regret later :-). 

-Sri