Nifty 3138.65
The view remains the same. Today, if Nifty sustains above 3130 region, then Nifty is likely to move up above 3200 region and in few trading sessions it could test 3300 region. Stop for the longs is 3130.
On the other hand, a move below 3130 would invite further downside and in this case, Nifty could see a range bound trading between 3075 and 3130. And also, a move below 3075 would invite further correction towards 3000. As long as Nifty stays above 2940, the upside target of 3300 is vaild.
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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