Last week market opened at 4578.80 & this itself was the high of the week.It then continued to decline to register the low of week at 4354.45 & finally closed the week at 4528.80.Thus it lost 51.25 points during the week over previous week’s closing.This is approximately 1.10% erosion in value. 

RETROSPECT: - We are holding the nifty long of 4440 with the stop of 4400 after the hit of the two whipsaw stoplosses.

SENTIMENTS: - Market sentiment is bearish & investor confidence is rudely shaken with the vertical horrified decline in Chinese market.Selling by the FIIduring the first four days of week has rubbed the wounds of investors but thanks to DII'S incredible job 4350 was not breached. 

ELLIOT WAVE THEORY: - The stupendous surge from 3918.75 has compelled us to conclude that the new impuse wave has started unfolding.Therefore now we will concentrate our efforts to analyze the wave count from the low 3918.75 of 13th July 2009.At 4731.45 top on 4th Aug,2009 it has completed wave 1 or A as five wave upside sequence.Similarly it has completed a flat pattern at 4353.45 on 19th Aug,2009 & in accordance with the previous labelling it will be labelled as wave 2 or B.We are expecting the third leg on upside to unfold.All projections & rational estimates of this   third leg leads us to the view that nifty will reach in 5476 to 5668 between the 17th Sept to 24th Sept,2009 & these are amply demonstrated in the chart accompanied.

JAPANESE CANDLESTICK:- In the weekly chart it has formed the inverted hammer & if nifty trades above this & forms the white candle it will be a confirmation of the uptrend.

CHART PATTERN:- In the half an hourly chart there is an inverted head & shoulder formation & this is being confirmed by the breach of neck line on the upside.The target of this comes at 4640.There is a flag formation in the daily chart but not shown in the chart for brevity.

PULSE-READING:-                  Last week JKD  soul voice said that GANPATI BAPPA WILL COME WITH 4500+ NIFTY ALONG WITH LOT OF RAINS & BID US FAREWELL WITH 5000+ NIFTY ALONGWITH THE BLESSING OF 6000+ NIFTY IN 2009 ITSELF.Bappa has arrived at 4528 with the rains & it looks he has accepted the JKD  SOUL PRAYERS  & OTHER WISHES WILL ALSO BE BLESSED AT MOST APPROPRIATE TIME. 

OUTLOOK & STRATEGY:-

Our outlook is of 5476 to 5668 between 17-09-09 to 24-09-09.We therre recommend holding the nifty long & may add any dip or major correction during the ride for the target of 5500.