Last week nifty opened at 5278.40 & went up to register the high of the 5378.70.It then declined to mark the low at 4984.60 & finally closed the  week at 5018.05.Thus it lost 259.95 points over the previous week which is 5.00%.

RETROSPECT: - Last week NIFTY broke below 5180 negating our bullish stand. 

SENTIMENTS: - Market sentiment has been battered brutally due to European crisis,Supremme court verdict on RIL-RNRL dispute & FII selling close to 1 billion worth of stocks during the week. 

ELLIOT WAVE THEORY: - The recent price drop of last week has more or less left with the only one wave count as follow.

      The last week's decline makes us to believe that the wave starting from 2539.40 on the 6TH March 2009 in 90%probability is over & its corresponding degree wave correction is underway. The reasons to believe are not far to seek behind. The advance decline, the volume, momentum, diverging oscillators & many more. The converging lines of diagonal triangles or traditionally speaking it is within wedge & may continue to trade within these lines as 10% probability. We are of the view that it is a herculean task for the nifty to break upside of rising trend line. The crossing momentum is very high along with ever bursting volume & advance decline & many individual stocks lead to new high every day. 
 
 

JAPANESE CANDLESTICK:- Last week it has formed the long black MORUBAZU CANDLE after the 2 cosecutive hanging man.Unless & untill nifty closes above 5138 these patterns will not be negated. 

CHART PATTERN:- Last week we had shown the potential bullish flag pattern which did not break.On the contrary it has broken on the downside leading to the further credence of RISING WEDGE.This is also not broken yet but there good chances of it doing so. 

OSCILLATORS READING:- The daily RSI,STOCHASTIC & MACD has entered the sell mode & signals further decline.The weekly RSI,STOCHASTIC & MACD  have enterd the sell mode & they are diverging at the same time. 

SECTOR ANALYSIS:- This week we intend to analyse the BSE METAL INDEX.This sector has out performed the market since March 2009.This sector has risen stupendously but lately it has started showing the sign of fatgue & oscillators diverging.Relatively it has lost more ground last week in relation to nifty.We see it reacting to 13000 level or lower in near future.

PULSE-READING:- JKD SOUL VOICE SAYS THAT IF YOU ARE PLAIN INVESTOR BOOK PROFIT & TAKE MONEY OF THE TABLE.COME BACK AFTER CELEBRATING THE DIWALI.IF YOU ARE A PROFESSIONAL TRADER PLAY HEDGE SHORT GAME.

OUTLOOK & STRATEGY:- Keep strict watch on the 5138 & if unable to cross play on the short side of the market.