Last week nifty opened at 5354.15 & went up to register the high of the 5382.15.It then declined to mark the low at 5237.55 & finally closed the  week at 5262.60.Thus it lost 99.85 points over the previous week which is 1.95%.

RETROSPECT: - Last week we were expecting nifty will not breach 5292, but the market action has proved us wrong & nifty traded decisively below 5292. 

SENTIMENTS: - Market sentiment has been waning & waxing in tandem with the FII fund flow & global market movement along with the caution & curiosity for the EARNING SEASON. 

ELLIOT WAVE THEORY: - The recent price action dictates that we should first decipher the wave count & pattern from 4675.40(8th Feb,2010.As soon as this pattern is completed & it's characteristics are confirmed, we will integrate & compact with prior price action to get larger picture & longer term wave counts. There are two probable wave counts from the low of 4675 & are shown with the blue & maroon color. The blue color wave count is bullish whereas the maroon color wave count is bearish. In our view as long as nifty trades above 5180 blue color wave count will have predominance over maroon. In the range of 5180-5095 blue & maroon will have equal prominence & below 5095 maroon color wave count will have predominance over the blue.

JAPANESE CANDLESTICK:- With the breach of 5092 the daily chart has reinstated the EVENING STAR pattern.The same has been reflected in weekly chart as black candle after consecutive nine week positive weekly close.This denotes that current the down may be carried on in the coming week. 

CHART PATTERN:- The movement from the election top till today is perfectly rising channel as shown by the blue color line in the weekly chart above.However the RESISTANCE LINE  drawn connecting 5180 & 5310 has acted as livewire for the current rise as it reversed even before touching.It will be interesting to see whether it is able to cross the line in next attempt & failure will pave the way for the RISING WEDGE FORMATION. 

OSCILLATORS READING:- The daily RSI,STOCHASTIC & MACD has entered the sell mode & signals further decline.The weekly RSI,STOCHASTIC & MACD are still in buy mode.The inference of the  mild decline can be drawn from above readings. 

SECTOR ANALYSIS:- This week we intend to analyse the BSE-AUTO INDEX.This sector has out performed the market since March 2009.This sector has risen stupendously.Last week it has completed the major wave 3 & has set in the correction.We expect this correction to terminate below 7100 & above 6500.This has been further augmented by the weekly BEARISH ENGULFING LINE Japanese reversal pattern.From the trendline analysis point it has breached it downside.From the Fibonacci retracement point 6500 is the 25% level of the rise.Oscillators are also negatively diversing & points for the deepening of the correction further.We advise the profit booking in this sector & avoid short selling as it is still in major bull trend.However the aggressive trader may short sell with the 7900 as strict stop.

PULSE-READING:- JKD SOUL VOICE SAYS JUST WAIT ASIDE TILL TUESDAY AFTERNOON & THEN FOLLOW THE TREND EMERGING THEREAFTER.

OUTLOOK & STRATEGY:- Keep strict watch on the 5095-5180 for reversal & if it materializes then buy with the stop of 5095.In case of weakness sell short with the stop of 5180.