NIfty 3364.60
Short term trend in Nifty is looking bullish and this view holds good as long as Nifty stays above 3300. And as long as Nifty stays above this level, it has potential of testing higher targets above 3400.
Today, if Nifty sustains above 3330, then it has potential of testing 3400. The stop for the longs is 3330.
A move below 3350 is an early indication of weakness and a move above 3380 would indicate bullishness.
Tata steel 515.15
Short term trend in Tata steel is looking bullish and previously it was mentioned that a move above 515 would impart bullishness. Yesterday, it moved above 515 and now if it stays above 510, then it has potential of testing 550 in coming trading sessions. Now the stop for the longs is 510.
If it moves below 510, then it has potential of testing 495 level, from where it is likely bounce for higher targets.
Medium term Outlook of Nifty
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 3200.
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 end of August 2006. If Market moves in expected lines, then once again we are likely to see a strong bull market in coming months.
