Nifty 3075.85
The short term trend continues to be bullish and Nifty has potential of testing 3300 and above, as long as it stays above 3000.
Today, Nifty is likely to bounce from current levels or from 3000 region and in the upside if it crosses 3150 region, it indicates termination of downside correction.
On the other hand, a move below 3000 would invite further downside towards 2900.
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.
