Nifty 3169.30
Today, if Nifty sustains above 3140 and moves towards 3220 and stays above that level, then the next target of 3300 is possible in coming trading sessions. The stop for the longs is 3140 and don’t hold long positions below 3140 for the time being.
On the other hand, if Nifty violates 3140 region, initially it could test 3085 and if this level is not held, then the downside could extend further towards 3000.
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.
