Last week nifty opened at 5279.05 & went down to register the low of the 5160.90.It then rose to mark the high at 5331.80 & finally closed the  week at 5304.10.Thus it gained 42.50 points over the previous week which is 0.80%.

RETROSPECT: - Last week NIFTY remained above 5180 approving our bullish stand. 

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.However during the last week global clues & FII flow had been positive & on earnings most of the results were on expected line provided strong foundation for bullish sentiments as amply reflected in the surge of open interest. 

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:- Last week it has formed the inverted hammer & this has reversed or negated the previous week's bearish cannotations.However this can not be taken very bullish pattern as there is very little of downtrend to reverse.

CHART PATTERN:- Last 3-4 week's price action has formed the BULLISH FLAG pattern.However the resistance line drawn connecting the 5180-5310 will provide resistance.It will be interesting to watch whether FLAG BREAK out is able to cross this line or not.

OSCILLATORS READING:- The daily RSI,STOCHASTIC & MACD have turned up after declining .Weekly oscillators were already in bullish territory. 

SECTOR ANALYSIS:- This week we intend to analyse the BSE-FMCG INDEX.This sector has out performed the market since March 2009.This sector has risen stupendously.Though it’s momentum has slowed down, we are of the view that it will rise 10-12% from the present level of of 2887.We see minimum 3180 & maximum is 3380.This is based on our ELLIOT WAVE ANALYSIS.We have preference for the ITC among constituents & may outperform it’s peers in next two months.

PULSE-READING:- JKD SOUL VOICE SAYS JUST WAIT ASIDE TILL EXPIRY OVERLOAD SHEDS DOWN THEN GO BULLISH.

OUTLOOK & STRATEGY:- Keep strict watch on the 5150-5170 for reversal & if it materializes then buy with the stop of 5125 for the target of 5400 & above.