||Last week the NIFTY closed at 8583.40 registering a loss of 1.3% while its previous week the NIFTY registered a gain of 1% by giving a close of 8697.60. Our view last week was on hold as we wanted to give ourselves an additional weeks’ time to come to some concrete conclusions in the short term. Now if we observe the NIFTY chart since 30th August 2016, we see that it has been formed between a channel of 8565 on the lower side and 8945 on the higher side. We could call this as a consolidation which is also referred to as time correction. Note that prior to this correction we already saw NIFTY rallying from almost 7000 to 9000. So this time correction was bound to happen and is very important too for the markets in the long run. The markets breathe here, gather the necessary strength and then start moving again. How long will such a time correction last is difficult to predict. Historically it has been observed that the time frame can vary between a couple of months to 18 months. Now, realistically during these phases it gets challenging for stocks to show momentum as the demand dries up a bit and hence we must all have realistic expectations. These times test your patience and hence if you are the impatient types then you must be cautious. During this phase, the low/medium risk taking investors should try and stay away from the markets. This week we expect the NIFTY to continue its consolidation with a few points up and down movements. 8500 will be an important support level to watch out for. All the best!