28, JUNE
Nifty 2982.45
The last upmove has cleared 2950 and tested 3083 in the upper side and this indicates strength of the last upmove. Now, any downmove would be correcting the recent rally from the low of 2595.
Today, if Nifty doesn’t violate 2900 in the downside and moves above 3000 and sustains above that level, then Nifty is likely to see a sharp upmove towards 3100 initially and then the level 3300 will be tested in coming trading sessions.
On the other hand, if Nifty violates 2900 level, then it is likely to bounce from 2860. Only below 2840 level, Nifty could turn weak further to test 2750 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.
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.
