30, May
Nifty 3214.90
As I have mentioned yesterday, if Nifty sustains above 3200 region and moves past 3250 region, initially it could test 3350-3400 level and then it could move towards 3500 in coming trading sessions. If that is the case, then we could see sharp and strong broad based rally in individual stocks. Scrips like Satyam, Acc, Reliance, Tisco, and Telco would lead the rally. Stop for the Nifty longs is 3170.
On the other hand, if the region 3140 is violated in the downside, Nifty would move towards 3050 region. Even if it tests 3050 region, it could rebound from that level. Only below 3000 region, Nifty could turn weak further to go below its earlier low of 2896.
It Seems Nifty has bottomed out and has turned bullish. Initially, it could move towards 3500 level. After a short term correction of 300 points from that level, Nifty could move above 3500 level and it has possibility of testing 3800 in coming weeks.
Tuesday, May 30, 2006
Monday, May 29, 2006
TECHNICAL OUTLOOK
29, May
Nifty 3209.60
If Nifty sustains above 3200 region and moves past 3250 region, as previously mentioned, it could move towards 3350-3400 region.
On the other hand, if the region 3140 is violated in the downside, it could move towards 3050 region. Even if it tests 3050 region, it could rebound from that level. Only below 3000 region, Nifty could turn weak further to go below its earlier low of 2896.
If Acc sustains above 785 region, it could move towards 850. If reliance sustains above 940 region, it could move towards 1000.
The level 3000-3050 level is crucial for deciding whether a bottom was already formed or there is still some downside. As long as Nifty stays above 3000-3050 level, there is a strong possiblity of a bottom being formed.
If 2896 is the bottom, then we could see a strong rally towards 3650 region initially.
It seems that the overall trend in the Nifty continues to be bullish. Nifty has retraced around 25 percent from the high in percentage terms. Any percentage of retracement with in one third ( 33% ) retracement level is acceptable for a bull market correction.
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Nifty 3209.60
If Nifty sustains above 3200 region and moves past 3250 region, as previously mentioned, it could move towards 3350-3400 region.
On the other hand, if the region 3140 is violated in the downside, it could move towards 3050 region. Even if it tests 3050 region, it could rebound from that level. Only below 3000 region, Nifty could turn weak further to go below its earlier low of 2896.
If Acc sustains above 785 region, it could move towards 850. If reliance sustains above 940 region, it could move towards 1000.
The level 3000-3050 level is crucial for deciding whether a bottom was already formed or there is still some downside. As long as Nifty stays above 3000-3050 level, there is a strong possiblity of a bottom being formed.
If 2896 is the bottom, then we could see a strong rally towards 3650 region initially.
It seems that the overall trend in the Nifty continues to be bullish. Nifty has retraced around 25 percent from the high in percentage terms. Any percentage of retracement with in one third ( 33% ) retracement level is acceptable for a bull market correction.
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