Last week nifty opened at 4827.90 & went down to register the low of the 4783.90.It then rose to mark the high at 4929.70 & finally closed the  week at 4844.90.Thus it gained 18.05 points over the previous week which is  just 0.3%.

RETROSPECT: - Last week we have covered our short position of 5100 at 4825 & at the moment not holding any position.

SENTIMENTS: - Market sentiment is certainly beaten down & negative,however viewed in the context of CRR hike by INDIA & CHINA & then followed by the US FED'S sudden decision on hike,it has come out very courageously.This augurs well for BUDGET & hints at resilience to absorb any negative news.

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.

   

         In both the wave counts from the top of 5310.85 there should be a downward impulse unfolding. Therefore in the TWO hourly chart below we have attempted to analyze the wave count from that perspective. 
 
 

JAPANESE CANDLESTICK:- Last  week we had ignored the bullish harami pattern for some different considerations.In bygone week this was neither confirmed nor negated.We would like to wait for the coming week for further light. 

CHART PATTERN:- There is an inverted HEAD & SHOULDER PATTERN develoing on the chart as shown above.Any move above the 4925 with the strong volume confirmation will stamp the pattern.

PULSE-READING:- JKD SOUL VOICE SAYS JUST BE BULLISH ABOVE THE 4940 WITH THE STOP OF 4900.

OUTLOOK & STRATEGY:- Buy above 4940 with the stop of the 4900 for the target of 5150.