Nifty 2997.90
It seems Nifty is likely to test 3100 initially and it could test 3300 region in coming trading sessions. The stop for the view is 2940.
On the other hand, if Nifty violates 2940 level, then it is likely to test 2860.
SBI seems to be near its bottom and it could bounce from current levels to test 800 in few trading sessions. One can enter this scrip around 700 level with a stop at 685. Follow the stoploss strictly or hedge the futures positions using 700 Put option.
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.
