Nifty starts a rebound after a five wave decline

The Nifty index fell in five waves on the hourly chart below and the hourly momentum shows a positive divergence at the lows. The five wave decline indicates a downward trend but in the near term it means that we can bounce back in three waves to retrace 50% or 61.8% of the fall to 21800 or 21850 before we head lower again.