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      Last week nifty opened at 4935.60 & went down to register the low of the 4935.35.It then rose to mark the high at 5118.65 & finally closed the  week at 5088.70.Thus it gained 166.40 points over the previous week which is over 3.3%.

RETROSPECT: - We are holding the long position of nifty from 5076 with the stop of 5020 for the target above 5150.

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.Probably the direction of the move is up as indicated by last week's price action.

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 17 days. 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. We have to eliminate this wave count as nifty has crossed the 5070.Therefore we have to presume that a new impulse wave is unveiling from 4675.40.The intraday wave count of the same from 4675.40 is given below. 

JAPANESE CANDLESTICK:- There is weekly candle of OPENING MORUBOZU & indicates further bullishness.If one streches imagination it has formed the  MORNING STAR pattern. 

CHART PATTERN:- There is no specific pattern available at the moment.

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

OUTLOOK & STRATEGY:- Hold the long position of 5070 with the stop of the 5020 for the target oF 5368.