NIFTTY HAS FORMED THE INTERMEDIATE BOTTOM AT 5690?

      Last week nifty opened at 5789.95 &  then went down  to 5754.70 to register the low  of the week. It then rose   to mark the high at 6029.50 & finally closed the  week at 5992.80.Thus it gained 240.85 points over the previous week which is 4.0%  approximately.

RETROSPECT: - We had entered long at 5860 for the target of 6300 with the stop of 5790.

SENTIMENTS: - Sentiments took deep retreat with the simultaneous breach of 6000,FII selling & vertical decline in mid-cap & small cap shares.has slightly stabilised with the market.However overall sentiment reading is negative.

ELLIOT WAVE THEORY: -   Last week's price decline has kept  two major wave counts shown below. First one shown in blue color was all along we were following & should have been bottomed out on last Friday's low  of 5690.35.However the confirmation of this comes only if it is able to swiftly cross above the 6090 level. Second one shown in purple color shows that first leg of correction is terminated at 5690.35 & second leg of correction will slowly crawl up to 6100 but would not cross 6200 & will be without any momentum. Next week's price action will distinguish among these two wave counts. For the coming week we will treat 6090-5810 as trading range, bullish above 6090 & bearish below 5810.

 On the shorter term chart it has formed the INVERTED HEAD & SHOULDER & if it crosses 6030 with the volume its target is around the 6330 .

JAPANESE CANDLESTICK:- On the weekly chart it has formed the distorted BULLISH ENGULFING LINE OR PIERCING LINE.This has a bullish implication & specifically so if during the coming week it forms the white candle.Many of the individual stocks have formed the BULLISH ENGULFING LINE in ideal sense.

CHART PATTERN:-  There is no significant chart pattern visible.However the double top formation advocated in many circle is too early to call with this fall.

OSCILLATORS READING:-  The daily RSI,STOCHASTIC & MACD are turning up from  the deep oversold area.The weekly RSI,STOCHASTIC & MACD  have come down to neutral zone & arestabilising in this zone.

SECTOR ANALYSIS:-  We recommend the metal sector to go long.This has been consolidating in the range of 18500-14000 & now it has turned up from the lower level.We see the target of 20500 from the present level of 16500.

STOCK RECOMMENDATIONS:-  

(1)BUY HDFCBANK AT 2400 WITH THE STOP OF 2350 FOR THE TARGET OF 2550 & ABOVE.

(2)BUY EDUCOMP AT 570 WITH THE STOP OF 548 FOR THE TARGET OF 630-650.

(3)BUY IVRCLFINFRA AT 130 WITH THE STOP OF 124 FOR THE TARGET OF 160 & ABOVE.

(4)BUY TATASTEEL AT 634 WITH THE STOP OF 624 FOR THE TARGET OF 675.

(5)BUY PRAJIND AT 74 WITH THE STOP OF 72 FOR THE TARGET OF 82.

PULSE-READING:-  JKD SOUL VOICE SAYS  NIFTY HAS BOTTOMED OUT AT 5690.IT IS NOW QUETION OF WHO TAKE THE LEAD.ONE BUYING SPREE & ALL HERDS WILL FOLLOW LEADING TO HUGE PRICE AS MARKET IS HOLLOW & DEVOID OF LOOSE & WEAK HOLDERS.EXPECT THE STUPENDOUS & SWIFT MOVE.BE WISE TO ACT EARLY THAN LATE.

OUTLOOK & STRATEGY:-  Keep strict watch on the 5810 for medium term  long position & 6020 FOR SHORT term  POSITIONS.RANGE has been  BROKEN ON UPSIDE, will LEAD TO STUPENDOUS RISE.