Nifty 2932.75
The price pattern in Nifty that unfolded after testing the low of 2595 is a bullish one. The pattern already confirmed the bottom at 2595 and this view holds good as long as it stays above 2850. Now Nifty is likely to bounce from current levels or from 2850 level and the next upmove is likely to move past 3200 region in coming trading sessions.
Banking sector is likely to see a sharp upmove in coming trading sessions.
Today, if Nifty tests 2970 region initially and sustains above 2940 region, then it could gain strength further to move towards 3060 region.
On the other hand, if Nifty violates 2920 region, correction could extend further in the downside towards 2850.
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.
