Nifty 3389.90
If Nifty sustains above 3370, then it can be assumed that the correction was completed at 3328. And the short term trend would turn bullish, if it sustains above 3370. On the other hand, if Nifty trades below 3370, then it could test 3300 before moving up.
Today, if Nifty sustains above 3370, then it has potential of testing 3420 initially, and further, if it trades above this level, then Nifty has potential of testing 3440 and above.
Those who have exited their long positions in those scrips in which the stop was triggered, can re enter their positions above the stop loss levels and can hold their positions with the same stop. The upside targets for all those scrips remain same.
Medium term Outlook of Nifty
On June 14, before Nifty had bottomed out, I suggested two bullish post correction scenario, in which, one being, Nifty could cross its all time high before the end of August 2006. By August end, Nifty tested a high of 3452. Now, my bullish view on Nifty continues to be same.
The pattern in Nifty suggests that it is likely to exceed its all time high of 3774 in two or three months atleast by few points before going in to corrective mode. So, I project a target of 3800 for Nifty in coming months. This view holds good as long as Nifty stays above 3200.
