02, JUNE
Nifty 2962.25
Though the level 3050 was also breached, the trading pattern for the past few trading sessions suggests that the Nifty is in the last leg of this correction. Now the possible range for the last leg to get completed is quite wide. In some cases, if the market is strong, it will not go below its previous low and here it is 2896. In some cases, a new low will be formed within few points below the previous low. In this case, Nifty could form a bottom around 2850. In some cases, the low is formed at double the length of the previous rally. Here the previous rally moved up 380 points and another 380 points fall below the low of 2896 is the maximum possible correction.
With almost all the individual stocks already retraced by 33 percent, a drastic extended downside fall in Nifty seems unlikely. Chances for Nifty to bounce back within 70 points from here is more likely. Todays trading pattern can give a clue about the position of Nifty. In any case, the swing in the nifty is going to be wide. Protect your position with stoploss or hedge using options.
On the upside, a move above 3130 region would give strength to the market.
