NIFTY CROSSED THE 4731,NOW 5400 OR 5600? 

Last week market opened at 4536.95 & this itself was the low of the week.It then continued to rise to register the high of week at 4743.75 & finally closed the week at 4732.35Thus it gained 203.45 points during the week over previous week’s closing.This is approximately 4.50% swelling 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 turning cautiously bullish with skepticism.Participants are seeing the prices making new high amid the clouds of drought, Chinese market decline,rising commodity prices with stunned eyes of disbelief.  

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.It may be noted from the chart that the trajectory drawn last week ,had been followed in spirit with appropriate momentum & price allevation.

JAPANESE CANDLESTICK:- In the weekly chart it has formed the long white candle.This candle confirms the inverted hammer formed on the previous week.

CHART PATTERN:- In the weekly chart above we have shown the formation of the ascending triangle & any break above of 4730 will lead to 800 points rise which comes close to 5500.Incidently the breach of 4730 on upside will be break out from the large inverted head & shoulder pattern. 
 
 
 

PULSE-READING:-                  JKD  soul voice says that market may consolidate for another 4 to 5 days in 4730-4580 range & then break out for the 5300-5500. 

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.