Last week nifty opened at 5252.65 & went up to register the high of the 5292.50.It then declined to mark the low at 4954.85 & finally closed the  week at 5036.Thus it lost 216.20 points over the previous week which is just short of 4.4% .

RETROSPECT: - Our all long were stopped out at 5110 & fresh short were initiated below the 5100.

SENTIMENTS: - Market sentiment is certainly pessimistic with utter confusion.RBI CREDIT POLICY,GLOBAL DECLINES,EARNING BLUES,FII MASSIVE SELLING ,ETC  leaves not a single factor in horizon for the upside.

ELLIOT WAVE THEORY: - The stupendous surge from 3918.75 has compelled us to conclude that the new 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 as five wave upside sequence. Similarly it has completed a flat pattern at 4353.45 on 19th Aug,2009 & in accordance with the previous labeling it will be labeled as wave 2 .From 4353.45 it has unfolded the third leg of the rise till 5181.95 on 20th Oct,2009.Accordingly we have labeled this as wave 3. From the top of the 5181.95 it has declined to 4538.50 in 10 trading sessions. This we labeled as the wave 4.From the 4538.50 we are viewing as the resumption of wave 5.

          Last week we had given the two wave counts. Since it has breached the 5150 the first one of less probable wave count has become the MOST PROBABLE WAVE COUNT. However it has not breached the 4944 in lesser time than it took to form the high of 5310.If the further downside momentum continues, we will stamp the count confirmed. Otherwise with further unfolding of the data we will work out the next appropriate wave count. 
 

JAPANESE CANDLESTICK:- Last  few weeks pattern has worked out as the EVENING STAR,a reliable Japanese candlestick pattern.

CHART PATTERN:- There is a RISING WEDGE formation emerged on weekly chart.However this will get confirmed only on breach of lower trend line.

PULSE-READING:- JKD  soul voice says that there would not be new high till 10th of March 2010 & 5310 will remain EVEREST TOP for the bulls till then.

OUTLOOK & STRATEGY:- Sell at every rise above 5050-5070 with the stop of 5120.