Just two days ago, on Friday May 18, the Nifty made an intra day low at 4789. The Index has bounced back to close at 4906 today, Monday. A 110 point gain from the lows is a sign that at least some of the selling momentum is waning.
At 4789, the Nifty also entered a strong support zone between 4700 and 4800. This gives some reason yo assume that the Index may have made a low at 4788. This low may be the final low in a correction that started from 5630. OR, it may just be a support point in a developing trading range. And, the possibility exists that the low may not hold at all.
Assuming that the low holds for now, the interesting question will be: Is the decline over? The Nifty should begin to make a pattern of higher highs for us to start thinking of a rally. The first step should be to look for a close above 5040 which is a minor high made earlier. If the Nifty does this, we will begin to evaluate the trend of the market with a bullish bias. Till, then assume the market is sideways.