GABBAR BOLA JO DAR GAYA SAMJHO WOH RAH GAYA.

      Last week nifty opened at 5639.20 &  this itself was the low of the week. It then rose  relentlessly to mark the high at 5901.65 & finally closed the  week at 5884.95.Thus it gained 244.90 points over the previous week which is 4.40%  approximately.

RETROSPECT: - We are long on nifty as well as market from 5660 & holding the position with the stop of 5720 for the target above 6100.

SENTIMENTS: - There is sea change in sentiments with the cross of 5600 & massive inflow of FII, sentiments is just not positive but turning into party time.We still would not like to call the inception of frenzy however it is not too far off.The eternal pessimist have now the new tune of all time high resistance.

ELLIOT WAVE THEORY: -   Last week we had estimated the weekly target at 5820 & monthly target at 6112.We have not only achieved the weekly target but surprisingly surpassed it.

   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 is 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 last week we had shown two alternate wave counts in green & black color. We were all along following the green color wave count, but this get negated as nifty traded 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  second 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.Such patterns are so rarely seen but the subsequent price action with the volume,momentum,advance-decline & gaps have stamped the break out.

OSCILLATORS READING:-  The daily RSI & MACD has  turned up & indicates the short term  bullish atleast.The weekly RSI,STOCHASTIC & MACD  have turned up for bullish indations.

SECTOR ANALYSIS:-  This week we are analysing the               POWER   sector.It has formed the rectangle pattern like the nifty. However in past it has been laggard & underperfomer to nifty.Our analysis shows that now it is most likely to get into catch up act.We see about 30% gain from the present value of 3165 to 3910 & 455 in next 6months to 4500.

STOCK RECOMMENDATIONS:-  

(1)BUY HEROHONDA  AT 1733 WITH THE STOP OF 1700 FOR THE TARGET OF 1900.

(2)BUY INDIACEMENT AT 114 WITH THE STOP OF 110 FOR THE TARGET OF 140.

(3)BUY RCOM AT 168 WITH THE STOP OF 164 FOR THE TARGET OF 190. 

(4)BUY EKC AT 122 WITH THE STOP OF 117 FOR THE TARGET OF 138.

(5)BUY NAGARCONST  ON CROSS OF 165  WITH THE STOP OF THE 160 FOR THE TARGET OF 190.

PULSE-READING:-  JKD SOUL VOICE SAYS THAT MARKET HAS BROKEN OUT OF CONGESTION ENTER THE LONG ON QUALITY STOCK WITH THE STOP OF 5650 & LOOK FOR DECENT RETURN OF 15%

OUTLOOK & STRATEGY:-  Keep strict watch on the 5650 for any long position. FRENZY HAS JUST BEGAN JOIN THE PARTY & ENJOY IT.