Last week nifty opened at 4849.35 & went down to register the low of the 4833.15.It then rose to mark the high at 4992.00 & finally closed the  week at 4922.30.Thus it gained 77.40 points over the previous week which is over 2.0%.

RETROSPECT: - Last week due to union budget we had closed all our open positions & did not initiated the new positions.

SENTIMENTS: - Market sentiment has received the sigh of relief as almost all the major events & uncertainties are behind & discounted.Participants are now looking forward to the direction of move.

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. This irregular flat has ended at 4675.40 on 8th Feb,2010. This we have marked on the chart with the pink color.

 
 

            In both the wave counts from the top of 5310.85 there are five wave counts at 4675.40 & took 22 working days. For the IRREGULAR FLAT wave count to be valid the post pattern behavior dictates that 5310.85 should be retraced 100% or more in less than or equal to 22 days .It has already completed the 13 days & not even crossed the 61.8%.However it can still make up, the probability is receding. According to our DIAGONAL WAVE COUNT it should unveil a zigzag correction. It has unfolded the wave A of zigzag at 4675.40 & wave B is ongoing. In this case it should not cross 5070, for the zigzag pattern to be valid.

JAPANESE CANDLESTICK:- There is no specific pattern developed at this stage. 

CHART PATTERN:- Last week we had figured the developing inverted head & shoulder.This has been negated as the right shoulder took more time to form than left shoulder.

PULSE-READING:- JKD SOUL VOICE SAYS JUST BE BULLISH ABOVE THE 5070 WITH THE STOP OF 5020.

OUTLOOK & STRATEGY:- Buy above 5070 with the stop of the 5020 for the target of 5150.