Monday, May 22, 2006


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.