Last week nifty opened at 4755.35 & went down to register the low of the 4675.40.It then rose to mark the high at 4843.80 & finally closed the  week at 4826.85.Thus it gained 108.20 points over the previous week which is more than 2.0%.

RETROSPECT: - We are holding the short position of 5100with the stop of 5150.

SENTIMENTS: - Market sentiment is certainly pessimistic with utter confusion.Most of the uncertainties are behind us like earning season, RBI's credit policy & others except the BUDGET.However the fear of Europeaon crisis abated & Chinese CRR hike has taken it,s toll on sentiments that even excellent IIP numbers will be washed out.We will rate the sentiments to be negative.

ELLIOT WAVE THEORY: - The recent price action has emerged out with the different set of wave counts in the daily chart. First we have drawn a diagonal pattern from 3918.75 (the low of 13th July 2009)& this has ended at 5310.85 on 6th Jan 2010.Since then it has been unveiling the impulse pattern on downside. This has been depicted in the dark green color. Alternatively we have labeled an impulse pattern from 3918.75 to 5181.95(20th Oct,2009).Then we are looking at the unfolding of an irregular flat pattern. Within this flat pattern we have completed the wave A & B ,& wave C is in the terminal stages of completion. This we have marked on the chart with the pink color.

            Since the top of 5310.85 the downward impulse pattern has been depicted & labeled in the hourly chart below for fine tuning the termination of the pattern as well as for the benefit of the intraday traders.

JAPANESE CANDLESTICK:- Last  week it formed the bullish small candle after the three consecutive black candles.This may be termed as bullish harami,however due to othe consideration we declined to label the pattern & may await for further unfolding of the data.

CHART PATTERN:- There is an INVERTED FLAG formation has emrged on the daily chart  & this has bearish implications.

PULSE-READING:- JKD SOUL VOICE INDICATES SOME SERIOUS BEARISH NEWS IN THE OFFING & IT IS BETTER TO REMAIN ON SIDELINE FOR COMING WEEK.

OUTLOOK & STRATEGY:- Sell at every rise above 4850 with the stop of 4920.