14, JUNE
Nifty 2663.30
Previously it was mentioned that Nifty was in the last leg of this correction and in the worst case it could test 2500 level. Now, Nifty is closer to that level and it seems that Nifty is likely to bounce any time strongly from 2500 – 2650 levels and in the upside it could test 3100 levels in coming trading sessions.
Nifty has corrected more than 1000 points in a short span of time. These type of corrections usually occur during bull market where some upside moves are running corrections. Only running corrections would be corrected in the downside in a short span of time.
The post correction scenario has two possibilities. One possibility is, Nifty 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 within 3 to 4 months. If Market moves in expected lines, then once again we are likely to see a strong bull market in coming months.
If correction terminates within the levels I have mentioned, the uptrend in Market will be still intact. Correction extending beyond this level is highly suspectable and then we have to rework the long term charts and also recovery will take months. Investors can re-enter the market with keeping 2300 as broad stoploss in the long term.
Today, if Nifty manages to stay above 2640 region, a strong rally is possible. Below 2640, Nifty is likely to rule weak.
Wednesday, June 14, 2006
Tuesday, June 13, 2006
TECHNICAL OUTLOOK - 13, JUNE
13, JUNE
Nifty 2776.85
Today, if Nifty manages to stay above 2700 level, it is likely to bounce back. If the low 2683 is violated then further weakness towards 2500 region is possible.
Nifty has corrected more than 1000 points in a short span of time. These type of corrections usually occur during bull market where corrections are of running in nature. Only running corrections would be corrected in the downside in a short span of time. Once the correction is over, the market is likely to develop a upside running triangle whose tip would fall outside the previous all time high. If this is the case, then once again we are likely to see a strong bull market in coming months.
Since Nifty is in the last leg of this correction, the last possible scenario is being that Nifty could bottom out around double the length of the previous rally in the downside. Here Nifty moved up 380 points. So, Nifty is likely to bottom out around 380 points below 2896 and it works out to 2516.
The previous intermediate top of Nifty was 2668.85 and it formed on 5th of October 2005. And also downside correction normally terminate around previous tops. So, a bottom might have already formed at 2683 or it is likely to bottom out around 2500 region.
If correction terminates within the levels I have mentioned, the uptrend in Market will be still intact. Correction extending beyond this level is highly suspectable and then we have to rework the long term charts and also recovery will take months.
Nifty 2776.85
Today, if Nifty manages to stay above 2700 level, it is likely to bounce back. If the low 2683 is violated then further weakness towards 2500 region is possible.
Nifty has corrected more than 1000 points in a short span of time. These type of corrections usually occur during bull market where corrections are of running in nature. Only running corrections would be corrected in the downside in a short span of time. Once the correction is over, the market is likely to develop a upside running triangle whose tip would fall outside the previous all time high. If this is the case, then once again we are likely to see a strong bull market in coming months.
Since Nifty is in the last leg of this correction, the last possible scenario is being that Nifty could bottom out around double the length of the previous rally in the downside. Here Nifty moved up 380 points. So, Nifty is likely to bottom out around 380 points below 2896 and it works out to 2516.
The previous intermediate top of Nifty was 2668.85 and it formed on 5th of October 2005. And also downside correction normally terminate around previous tops. So, a bottom might have already formed at 2683 or it is likely to bottom out around 2500 region.
If correction terminates within the levels I have mentioned, the uptrend in Market will be still intact. Correction extending beyond this level is highly suspectable and then we have to rework the long term charts and also recovery will take months.
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