16, JUNE
Nifty 2632.80
Nifty bounced as expected and now, if Nifty move towards 2950 sharply and sustains above this level, then the next upside target of 3100 is likely to be tested in coming trading sessions and the bottom would be confirmed at 2595. On the other hand, if it fails to cross 2950 region or it fails to sustain above 2950, then Nifty is likely to see a final panic sell off. Today, the stop for the longs is 2750.
Previously it was mentioned that Nifty was in the last leg of this correction and in the worst case it could test 2500 level and also it was mentioned the Nifty would bounce back around 2500 levels and in the upside it could test 3100 levels in coming trading sessions.
Nifty has corrected more than 1000 points in a short span of time. These type of corrections usually occur during bull market where some upside moves are running corrections. Only running corrections would be corrected in the downside in a short span of time.
The post correction scenario has two possibilities. One possibility is, Nifty likely to move towards its all time high in a slow manner and if this is the case, then it may take 6 months to 1 year to cross the all time high. The other view is, Nifty is likely to move towards its previous high without any major downside correction and in this case, Nifty is likely to cross the all time high within 3 to 4 months. If Market moves in expected lines, then once again we are likely to see a strong bull market in coming months.
If correction terminates within the levels I have mentioned, the uptrend in Market will be still intact. Correction extending beyond this level is highly suspectable and then we have to rework the long term charts and also recovery will take months. Investors can re-enter the market with keeping 2300 as broad stoploss in the long term.
