Let us go through some scenarios.
First, the Nifty continues to fall, touches 3800 or whereabouts, then finds support. It builds a base here.
Second, the Nifty rallies before it touches 3800, goes back into the trading range.
Third, the Nifty continues to drift down, then breaks 3800 decisively, trading lower. This is the scenario we are discussing here.
If 3800 is broken, the Nifty finds support at two different levels, 3650 and 2700 where minor support exist. Strong support comes at 2000. Now I do not believe that the Nifty will fall to 2000. This is not my suggestion. My point is: charts will not provide any technical support below 3800. There is a free fall, the Nifty can stop wherever it wants. We do have 3610 which is also the 50% retracement of the bull market that started in 2003. Then, we may be looking at the Nifty finding support around 3600. This is the best case scenario if 3800 gets broken. The worst case scenario is that these minor support numbers do not hold, the Nifty begins what may be a free fall.
The purpose of such scenario building is to face reality. If we are mentally prepared for a situation we can adapt to changing circumstances. We can go with market flow instead of fighting the market.