Nifty 3401.10
Short term trend in Nifty is looking bullish and this view holds good as long as Nifty stays above 3320. And as long as Nifty stays above this level, it has potential of testing higher targets above 3450.
Today, if Nifty sustains above 3385, then it could test 3440-3450 level.
The stop for the longs is 3375.
RELIANCE 1122.10
Short term trend in Reliance is looking bullish. If it sustains above 1110, then it has potential of testing 1160 in coming trading sessions.
In case, if it moves below 1110, then it could bounce from 1085.
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.
