The profit-taking mentioned in the article is depicted on the following monthly chart of the Nifty 50 Index (NSEI).
Price is sitting just below near-term support of 11000 and has fallen outside of an uptrending channel from the February 2016 lows.
The Momentum indicator (MOM) began diverging and making lower swing highs after October 2017, while the index was making higher swing highs...hinting at impending weakness. At the moment, MOM is sitting just above the zero level. A drop and hold below that would see price weaken further, perhaps down to its next major support level of 10000.
On a shorter timeframe,
- a bearish moving average Death Cross has just formed on the daily chart of NSEI,
- price is trading below both the 50 and 200 MAs, and
- Balance of Power is in the hands of the sellers and accelerating,