TECHNICAL OUTLOOK

22, May
Nifty 3246.90

Normally, Bull market correction in index correct upto 15 percent from the high in percentage terms. For Nifty, it works out to 567 points and it gives a target of 3210. Technically, Market would bottom out near the high of the previous wave. Here a wave pattern completes its high around 3200. If that is the case, then Nifty would move towards 3500 region initially. A move above 3320 would confirm the rally towards 3500.

On the other hand, if Nifty violates 3200 region, then Nifty could move towards 3050 region which is the tip of a running triangle. An early sign of weakness comes if Nifty trades below 3250.

If both the levels 3200 and 3050 are not held, then correction could extend further.

19, May
Nifty 3388.90

If the level 3340 is not breached, Nifty could bounce back from current levels and move above it’s previous top of 3642 in two or three trading sessions. Even if it moves above 3642 in coming trading sessions, another drastic fall from there towards 3425 is possible.

Instead, if it breaches 3340 level, then Nifty could slide towards 3290 region. Even this level is violated, We could see further drastic fall towards 3050 region in coming trading sessions. Exit your long positions if 3340 is breached.

Only a move below 3290 would confirm further downside. Otherwise, there is a possibility of sharp bounce back.

In the Medium term, if Nifty moves below 3290 region, the bullish view on Nifty for the time being is negated. But, as long as Nifty stays above 3290, the bullish view on Nifty remains valid.