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NIFTY HEADING FOR NEW HIGH ABOVE 4693. 

Last week market opened at 4377.90 & this itself was the low of the week.It then continued to rise to register the high of week at 4578.75 & finally closed the week at 4568.55.Thus it gained 193.40 points during the week over previous week’s closing.This is approximately 4.35% swelling in value. 

RETROSPECT: - Our conviction of the bullish bias was confirmed by the nifty as it did not breach the opening of the week & closed far above.This has deprived us to enter the long position.

SENTIMENTS: - Market sentiment has turned bullish after the hefty gains in the nifty for two consecutive weeks.This has again amply exemplified in the swelling figure of open interest. 

ELLIOT WAVE THEORY: - The stupendous surge from 3918.75 has compelled us to conclude that the new impuse wave has started unfolding.This has partly resolved the previous wave count from 2539.45.We are considering the wave (1) terminated at 3511.25 on 16^th April,2009.Similarly the wave (2) terminated at 3351.50 on 28^th April 2009,wave (3) terminated at 4693.20 on 12^th June 2009 & now the wave (4) terminated at 3918.75 on 13^th July 2009.From 3918.75 we are witnessing the unfolding of wave (5).This has been shown in chart below.
      

 For the shorter term we are of the view that Nifty is extending as well as subdividing the 5^th wave from 3918.75.At 4557.20 it has completed the wave (i) & wave a of wave (ii) completed at 4380.55.It looks that it has completed wave b of wave (ii) at 4578.55.Ideally it the wave c of wave (ii) should come to 4400 but we are so bullish that we do not see this terminating beyond 4437.Even we would not be surprised if it completes much above this level.Then we see the furious dream run of wave (iii) like a knife running through butter should take out the 4700. 

JAPANESE CANDLESTICK:-

 
 
 

CHART PATTERN:- In the weekly chart there are two patterns are visible.First there is flag formation & second the inverted head & shoulder pattern.These were reported last week.The flag formation has broken on upside.However the break out from the inverted head & shoulder has not materialized & we hope that it will in the coming week. 
 
 

PULSE-READING:- JKD soul voice says that the market will shoot up like a bullet from AK-57 either on Monday afternoon or latest by Tuesday 

OUTLOOK & STRATEGY:-

We recommend going long on nifty at any dip around 4500 with the stop of 4400 for the initial target of 4700 & then higher at 5200.