NIFTY ABOVE 5500 FOR 3 DAYS & 3% ABOVE 5500.

      Last week nifty opened at 5479.55 &  this itself was the low of the week. It then rose  relentlessly to mark the high at 5647.45 & finally closed the  week at 5640.40.Thus it gained 160.35 points over the previous week which is 3.00%  approximately.

RETROSPECT: - We were on sideline last week however now we have trend confirmation & nearby valid stop.

SENTIMENTS: - There is no perceptible change in sentiments over the previous week.Expectations started to build on fertilizer & power policy after the oil marketing & telecom policy from the government.Scepticism about the current rise is at the highest level & thereby lot of cash remians sidelined.Participants failed to assign the distinguished reason for the rise.This is the classic case of rise with fear psychosis hence retail participation nil & professional taking full advantage of it.

ELLIOT WAVE THEORY: -   We have drawn the daily chart below & shown the wave count from the 4786.45.It has completed the five wave sequence at 5549.80 & then unfolded the zigzag correction till 5348.90.We would prefer to label this rise (4786.45-5549.80) as wave (1) of larger degree & decline till 5348.90 as wave (2).As long as this trend line from 4786.45 to 5348.90 not breached on downside & nifty remains above this we would remain bullish & use the trend line as stop.

On the larger time frame the weekly chart we have shown two alternate wave counts in green & black color. We were all along following the green color wave count, but this get negated if nifty trades above the 5650 level. The alternate wave count in black color is holding the highest probability at the moment. However to elaborate on this we need some more unfolding of price data which hopefully we should be able to throw better light on course of the action in the market.

JAPANESE CANDLESTICK:- Last week it has formed the WHITE MORUBOZU as shown in the chart above.It is indicative of the market move on upside & next week we may have more gains.

CHART PATTERN:-  The upwardly tilted RECTANGLE FORMATION has been breached on upside.This is the 10-12 months consolidation within 700-800 points.The break out from such pattern has far reaching consequences on the next move.However such patterns are so rarely seen that we would like to confirm the break out in the form of volume, momentum,pullback & gaps.

OSCILLATORS READING:-  The daily RSI & MACD has  turned up & indicates the short term  bullish atleast.The weekly RSI,STOCHASTIC & MACD  have remained the neutral mode & may turn up if nifty moves up with vigour.

SECTOR ANALYSIS:-  This week we are analysing the OILGAS    sector.It has formed the upwardly tilted rectangle pattern like the nifty.Though it is not breaking out of this we are of the view even if it touches the upper boundry it will be gain of 12 to 13%.Again if one avoids RIL & enters into others like HPCL,BPCL OR ONGC  it will be more beneficiary

STOCK RECOMMENDATIONS:-  

(1)BUY COLGATE PALMOLIVE AT 826 WITH THE STOP OF 805 FOR THE TARGET OF 910.

(2)BUY APOLLOTYRE AT 85.5 WITH THE STOP OF 84 FOR THE TARGET OF 92.

(3)BUY FINANTECH AT 1360 WITH THE STOP OF 1325 FOR THE TARGET OF 1550 

(4)BUY INDIA CEM AT 112 WITH THE STOP OF 108 FOR THE TARGET OF 125.

(5)BUY VOLTAS AT 227 WITH THE STOP OF THE 220 FOR THE TARGET OF 265.

PULSE-READING:-  JKD SOUL VOICE SAYS THAT MARKET HAS BROKEN OUT OF CONGESTION ENTER THE LONG ON QUALITY STOCK WITH THE STOP OF 5500 & LOOK FOR DECENT RETURN OF 15%

OUTLOOK & STRATEGY:-  Keep strict watch on the 5500 for any long position.FRENZY HAS JUST BEGAN JOIN THE PARTY & ENJOY IT.