Nifty 3128.20
It seems Nifty is likely to test its next short term target of 3300 region in coming trading sessions and it should remain above 2940 to achieve the target.
Today, if Nifty sustains above 3105 region, then it could move towards 3200 level. On the other hand, a move below 3075 would invite further downside and in this case, Nifty could test 3000 level before bouncing back. Stop for the longs is 3105.
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, one can remain invested for the long term with a stop at 2850.
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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