07, JUNE
Nifty 2937.30
The view remains the same. 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.
The level 2850 and todays trading pattern would decide the direction, and extent of the correction. Since a downside triangle is forming, break out from the pattern in either way is possible.
