WILL NIFTTY RETEST THE BOTTOM OF 5721 & 5690?

      Last week nifty opened at 6033.65 &  then went up  to 6069.45 to register the high  of the week. It then declined   to mark the low of 5721.15 & finally closed the  week at 5857.35.Thus it lost  135.45 points over the previous week which is 2.3%  approximately.

RETROSPECT: - Long positions entered at 5860,are under hold with the stop revised to 5650 from the 5690.

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 open as shown below. First one shown in blue color was all along we were following & should have been bottomed out  at 5690.35.However the confirmation of this comes only if it is able to swiftly cross above the 6090 level. It has failed to do so last week still it has not breached the bottom so we have to keep as one of the probable wave count. Second one shown in green color shows that first leg of correction is terminated at 5690.35 & second leg of correction  has risen to 6070 & slumped down to 5721.15.This decline has risen the probability of green color wave count. However decline from 6338 has not yet shown the sign of termination. Hence we cannot confirm any one wave count.

  On the shorter term chart we have shown below the two probable wave counts of the corrective pattern which commenced from the 6338.The blue color wave count portrait that corrective zigzag pattern over at 5690 & we heading for the 6100.At the same time green color wave count suggests the corrective zigzag pattern is not over yet & it should make one more new low below 5690.As long as nifty does not cross 5927 on upside the green color wave count probability cannot be ruled out therefore the 5927 remains the fulcrum point for the coming week.

JAPANESE CANDLESTICK:- On the weekly chart it has formed the red candle & almost covered the last week's confirming white candle forming the piercing line.This has negated the potentially bullish pattern.

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 down indicating the short termtrend bearish.The weekly RSI,STOCHASTIC & MACD  have come down to neutral zone & arestabilising in this zone.

STOCK RECOMMENDATIONS:-  We are expecting the nifty to come close to 5700 & that may be the ideal opportunity to buy the below mentioned shares.Their recommended prices are therefore much below the existing price but we are hopeful of getting near to those prices hence advise to patiently wait for the same.

(1)BUY JINDAL STEEL AT 665 WITH THE STOP OF 645 FOR THE TARGET OF 740 IN THREE WEEKS.

(2)BUY JPASSOCIATE  AT 102 WITH THE STOP OF 97 FOR THE TARGET OF 117 IN 2 WEEKS.

(3)BUY WIPRO AT 432 WITH THE STOP OF 412 FOR THE TARGET OF 490 & ABOVE IN 4 WEEKS.

(4)BUY BGRENERGY AT 660 WITH THE STOP OF 600 FOR THE TARGET OF 830 IN TWO WEEKS.

(5)BUY YESBANK AT 280 WITH THE STOP OF 265 FOR THE TARGET OF 340 IN TWO WEEKS.

PULSE-READING:-  JKD SOUL VOICE SAYS  NIFTY HAS EITHER BOTTOMED OUT AT 5690 OR MAY MAKE A SMALL TICK & BOUNCED OFF SHARPLY & RISE STUPENDOUSLY FOR AT LEAST 4-5 WEEKS.

OUTLOOK & STRATEGY:-  Keep strict watch on the 5927 & 5690.Crossing the 5927 is big rally whereas breach below will offer a buy opportunity at dip for big bounce. We are bullish only as per our analysis.