When the US markets gave away their early morning gains to close lower, we did assume that India will also fall. But today's decline was far more than what other markets were going through.
The Nifty closed at 2938.65, down a whopping 6.66% below yesterday's close (3148.25). The downside momentum is very strong. Any and every adverse news immediately pushes the Nify down.
I assume that the intermediate up trend is complete. We have a pattern of lower highs in the minor trend, with the first high at 3240 and the lower high made yesterday at 3161. This is bearish.
While the uptrend will resume if and when the Nifty closes above 3240, we assume that the primary trend - down will assert itself. Look for a test of 2700 support. If this fails to hold (chances are the support will break) then we are looking at 2000, or even 1600.