Google+ WEEKLY VIEWS FOR 18-05-2009 TO 22-05-2009 ~ NIFTY DEMYSTIFIED

Sunday, May 17, 2009

WEEKLY VIEWS FOR 18-05-2009 TO 22-05-2009

Hi friends! What a week!! The whole India reaches out for stability the UPA govt once again got a big thumbs up and in a even bigger way. West Bengal (from where I belong to) came out to vote for the change and made it happened in a convincing way. There are new air all around, now lets make it more fresh, more free. Now talking about the market it's sure that market will cheer the astounding victory of UPA in the central. But I am unsure as the so called fund-a-mental analysts who are talking about market will go into the 12K-16K range and beyond while suggesting trade nifty between 1000 point range. Nobody can specify the answer neither anyone can do so. What we can do is go with the trend without disobeying it's actual nature. Friends I have surmised and asserted that nifty taking out 3780 convincingly can target 41xx in the coming days. I am starting off my charts study sticking to that views.

We have convincingly crossed previous 2 places where any corrective ABC can halt/stop. But it didn't happen. Now technically our next target should be BC=1.618 * AB. On Nifty Future
EoD chart that place coming near 4199-4222 zone. Now to validate that,

As per Elliot wave theory any 3 wave (ABC) correction against the 5 wave up move generally finds it's biggest and strongest support/resistance near or just before the 1st wave bottom or vice
versa. Now that BC=1.618*AB which I showed on the first chart getting ended right there at the bottom of first leg of the August fall. So from that scenario indeed 4199-4222 is place to look out for. Now trying to get the recent picture.

and it's quite clear every Fib level extension and the replacement complementing each other hence indicating towards the level 4121-4127, which in my money will be one of the important place to look out for. Now take a look at closing chart.

This is a weekly chart. A top-down fib calculation indicating the validity of the bottom as well as the various pivots. Pivot is at 3965-78. A forward down-top Fib calculation also getting merged at the same place as well the 261.8 extension is also coinciding. So we can say a weekly close (sometime day close) above 3980 can confirm the possibilities of the above discussed targets to be reached.
All targets will be activated only after 3800 is crossed as discussed earlier. So friends for the coming days I am expecting 4121-4127 even 4222 once we cross 3800. And we may extend further but will discuss later as want to take a medium strides for a rational trading. Have a stable trading with stable Govt.
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