26, JUNE
Nifty 3050.30
It seems Nifty is heading towards 3150-3200 region. Around this region, Nifty could see a sideways or a downside correction. A move towards this level would indicate further bullishness in coming tradings sessions. The stop for the longs is 2990.
If the level 2840 is not violated here after, then the low 2595 can be taken as bottom for this medium term correction and also Nifty should move above 3300 region in few trading sessions for further confirmation. If it fails to do so, then Nifty is likely to re-test its previous low of 2595.
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.
The post correction scenario has two possibilities. One possibility is, Nifty is 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.
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