Nifty 3123.35
The short term trend in Nifty continues to be bullish and it has potential of testing 3300 and above in coming trading sessions. It is likely to move towards that region from current levels or it could test 3000 level first before moving up.
Today, if Nifty sustains above 3085 level, and moves past 3150 region, then it could move towards 3200. Move above 3150 would confirm further bullishness. The stop for the longs is 3085.
On the other hand, if Nifty violates 3085 region, it is likely to test 3000 region.
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.
