Nifty has been in a strong uptrend from 8,000 levels as shown by higher high and higher low (Dow Theory).

It made a high of about 11,800 and then witnessed a dip toward 11,185. It was followed by a bounce to 11,600 odd levels after which a fall to 10,800 was seen.

Thus, on daily charts, the index has now formed a lower high lower low which implies the index has entered into a downtrend.

The benchmark index bounced from 10,800 to current levels of 11,300 where daily Ichimoku Kijun is placed which can act as a hurdle on an immediate basis.

Nifty will have to cross the previous swing high of 11,620 for the current downtrend to negate. Based on this theory Nifty can retest 10,900/10,700/10,500 levels where daily cloud support is placed.

Generally, the Dow Theory doesn’t give a target so one can look at Fibonacci levels to arrive at one.