Will nifty be able to sustain it’s momentum on upside?

Last week market opened at 3108.75 & went down to 2962.40 to mark as the low of week.It continued to surge up relentlessly till 3228.75 to register the high of week & finally closed the week at 3211.05.Thus it gained the whopping 102.4 points during the week.In percentage terms it gained more than 3.33% compared to previous week’s closing.

 RETROSPECT: -
Last  week we recommended to enter the long  nifty as soon as it declines around 2960 with the stop of 2910 for the target of 3450.This is much on its way towards target & should be hold.

SENTIMENTS: -
The market mood has certainly become bullish with the crossing of 3147 & knocking the door at 3240.Most of the participants have started exploring at which level to buy compared to previous tendency of exploring the short sell opportunity.However the caution or fear of decline from higher levels continue to pervade the minds of participants.The persistence of this fear or worry is good as it will keep feeding the further rise in nifty.

ELLIOT WAVE THEORY: -
 For the past many weeks we are trying to decipher the wave count from the 27 th Oct,2008 low of 2252.75. As discussed in last issue, we are left with the only two choices of flat correction or the impulse move from the 2252.75. The same has been shown in the chart below along with various Fibonacci retracements & projections.




However it can be seen from the chart whether it is flat correction or the impulse move the, the wave unveiling from 2539.75 should have impulsive structure consisting of five waves.Narrowing down to still shorter terms it has already completed the wave 1,2,3 & 4 & wave 5 as extended wave within sequence is unfolding.As per the rules & guidelines of EWT this wave 5 extended should minimum reach to 3531 though it can still go higher.As shown in the chart we have done various Fibonacci retracements & projections & three successive higher ranges where this wave 5 may hve likely termination.These are 3527-3549,3748-3772 & 3882-3909.Initially we will be looking for the first range at 3527-3549 for the current week & then look for the others as it progresses.

JAPANESE CANDLESTICK:-
Last week we had shown the bullish PIERCING LINE candle pattern  in the monthly chart.The same in continueing & its after effects are unfolding.

CHART PATTERN:-
As shown in the weekly chart below the envisaged double bottom has been confirmed as it has surpassed the level of 3147.The target of this pattern comes at 3800.At te same time the stochastic oscillator has diverged brilliantly at 2505 & 2540 bottoms.This a rare & pwerful bullish sign in weekly chart as marked by red colors arrows.This points towards the far bigger rise above 3147 than what is generally expected to be.



PULSE READING:-
This has no logic,theory,data or system.It is the experience coupled with the sound of soul.JKD’S pulse reading stated in plain words, market is headed for 4100.This up move is not likely to be short lived & may go far beyond another 100-200 points general belief.Defining time target is not possible at this juncture however upsurge has far greater potential than most experts believe it to be.

OUTLOOK & STRATEGY:-
We recommend to hold the long positions entered at 2960 with raising the stop to 3150 for the target of 3535 or above.