Is it the right time to start buying?

Guys last week, I posted my views about Nifty's support levels that whether it is going to hold 100 day moving average. And in that I expressed my concerned over various factors like global market movements, RBI policy & etc. And as I thought market didn't hold the 100 day moving average of 4940 levels.

Now market has corrected from 5300 levels to sub 4800 levels, i.e. almost 500 points in Nifty, which means 10% correction from its previous high in just 7-8 trading sessions. So now question is, whether the correction is over or still more to go?

If you see the previous highs & corrections, market has corrected to 78.6% from its high as per Fibonacci retracement. That is from 5200 levels to 4600/4580 levels. And if you go beyond that in August 09 market has corrected from 4700 levels to 4400 i.e. 50% retracement in Fibonacci.

And if you see the recent correction in market, that is 78.6% correction from 5300 levels to 4760 levels, which is Friday's intrady low. If market hold on to that level, then I believe market will be range bound of 4800 - 5000 for next few trading sessions.

So does it mean that we should start buying from this level? I think one can invest his 25% of his corpus at present level or 4700 level. Because I believe market may still come down from present level to 4600 which forms intermediate support in medium term.

So bottom line is one should be cautious at this level because one more major event is coming this month i.e February last week Budget. So as usual pre-budget corrections/expectation will be there. So be cautious is the status I would like to maintain.