NIFTY WILL RUN UP OR SDIEWAYS AFTER 4750 CROSSING? 

Last week market opened at 4730.85 & went up to 4735.90 to mark the high of the week.It then continued to decline to register the low of week at 4576.60 & finally closed the week at 4680.40Thus it lost 51.05 points during the week over previous week’s closing.This is approximately 1.250% 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 turning cautiously bullish with skepticism.Participants are looking at comfort from the late recovery in monsoon,stabilisation of Sanghai market & lastly u turn in American market on Friday. 

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 slightly below the required level & moentum has sagged.We are of the view that this was because of corrective wave ending at 4576 & during this week it will pick up.

JAPANESE CANDLESTICK:- There is no specific pattern development during the last week however are all pattern developed are still valid & not negated. 
 
 

CHART PATTERN:- In the weekly chart inverted head & shoulder pattern & ascending triangle patterns are just on the verge of break out & we may see the real impact in coming weeks. 
 
 
 

PULSE-READING:- JKD  soul voice says that market may jerk in 4700-4850 area for a while but this time it will surpass this resistance zone. 

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.