Last week nifty opened at 5299.35 & went up to register the high of the 5342.35.It then declined to mark the low at 5202.45 & finally closed the  week at 5278.00.Thus it lost 26.10 points over the previous week which is 0.50%.

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 another inverted hammer at higher level.This alongwith the trendline from March 09 low provides ample support for nifty to float above the 5180-5200.However for the upside the time is still not ripe & some more consolidation needed before a break out can materialize.

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 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 NSE BANK INDEX.This sector has out performed the market since March 2009.This sector has risen stupendously & still standing tall at 2 yearly high.It is in the process of challenging the previous high 10775 made in 2008.The current spate of banking stocks augments our logic.Technically speaking the the daily & weekly oscillators are all poised in bullish mode.From the chart pattern point of view the consolidation in the 9630-8150 in the form of a FLAG also provides the major foundation platform for further rise.We are looking for another 10-15% rise in next 3-4 weeks on conservative basis.In the frontline we expect the AXIS BANK & HDFC BANK to outperform the index.In the mid cap we like CANBANK the most to outperform.DENA BANK & IDBI BANK are our preferred growth banking stocks.

PULSE-READING:- JKD SOUL VOICE SAYS JUST WAIT ASIDE TILL TUESDAY AFTERNOON & THEN FOLLOW THE TREND EMERGING THEREAFTER.KEEP AN EAGLE EYE ON CRUDE & PETROLEUM STOCKS AS THEY ARE LIKELY TO PROVIDE SHOCKS TO ALL MARKET PARTICIPANTS.

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.