21, JUNE
Nifty 2861.30
Today,if Nifty moves below 2810 region, then correction could extend towards 2750 and it would take 3 to 4 days to complete the correction. If that is the case, then Nifty is likely to swing between 2850 and 2750 in coming trading sessions.
On the other hand, if Nifty manages to stay above 2840 level, then it would resume its upmove towards 2950 region.
For the past few weeks, I have been mentioning that the maximum possible downside potential is limited to 2500 level for Nifty. If market doesn’t violate this level here after, the long term bullish trend will remain intact. Correction extending beyond this level is highly suspectable and we have to rework the long term charts.
Now, if Nifty moves above 2950 and sustains above that level, then we can confirm the bottom at 2595. Instead, if there is going to be a correction for the recent rally from the low of 2595, then Nifty should not violate 2595 level to confirm the bottom.
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 before the month of August 2006. If Market moves in expected lines, then once again we are likely to see a strong bull market in coming months.
