Nifty 3425.70
Short term trend in Nifty is looking bullish and it has potential of testing 3500 in coming trading sessions.
Today, if Nifty sustains above 3405 and moves above 3430, then it could test 3460-3470 level.
The stop for the longs is 3390.
TATA STEEL 515.90
If this scrip sustains above 515, then it could move up for further higher targets. A move above 530 would confirm the upside. Stop for the longs 515.
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.
