01, JUNE
Nifty 3214.90
Last week, I mentioned that 3050 region is the tip of the triangle. Markets normally bottom out around this region, if market is correcting that particular last leg. Here, the last leg started around this region. Though Nifty moved below this level in the intraday, it has not so far closed below this level. So, the chances of market bouncing from this level is very high. If Market bounces from this level and clears 3280 region in three trading sessions, then the bottom formed at 2896 would not be violated here after.
For todays trading, Nifty could once again retest 3000 levels before moving up or it would sharply move towards 3140 region. In any case, a move above 3110 level would indicate strength. After testing 3280 level, Nifty moved down to test 2970 level in four trading sessions. So, Nifty should move above 3280 region in less than four trading sessions to move up further.
On the other hand, if the region 2970 is violated in the downside, Nifty would move towards its previous low of 2896 region sharply. Even this level 2896 is not held, then the correction could extend further drastically.
It Seems Nifty has bottomed out and has turned bullish. Initially, it could move towards 3280 level and if this region is cleared, then it could move towards its previous top of 3777 in coming weeks.
