06, JUNE
Nifty 3016.65
The trading pattern for the past few trading sessions suggests that 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 should not go below 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 of Nifty holding the bottom of 2896 is the most likely scenario.
On the other hand, if the region 2896 is violated, then there is a strong possibility of Nifty bouncing back around 2850 region.
Today, if Nifty manages to stay above 3000 level, it is likely to bounce from current levels and a move above 3130 region would confirm further upside in coming trading sessions. If this is the case, then market is likely to slowly move up initially and then it would pick up momentum in the upside.
Instead, if 3000 and then 2960 levels are violated, then the low of 2896 can be violated. If this is the case, then Nifty would violate these levels immediately in the morning itself.
