NIFTY AS ON 02/07/2010

To confirm the 5^th and final wave nifty has to pass 5366 previous high which shall than give us targets above 5500 means (5366 – 5210 )=156+5366= 5522 approximately

Wave are label 1-2-3-4-5 with golden color and shown where the 5^th and final wave could end is also shown. Nifty swing remains up on daily charts

If nifty breaks 5172 with volume and closes below 5125 levels could be counted as truncated wave 5^TH (means failure wave) as shown by green lines which shall be lower high and forming lower low at present swing low is 5210 trading below it shall be cautious unless nifty is above 5200 levels it shall still keep in hope for a new high and a close below only shall terminate the views. So positional shorts to be done below 5125 will be more safe. (Even though indicators are showing –ve divergence nifty is not falling by price since many days though Dow had broken 1000 pt while nifty had come down only 100 pts also 25 bps rate hike can effect banks stocks which was given after market hours. Also nifty had close below the previous week close showing weekness but still it is advisable to buy only intraday till the range is not broken out

FII net seller  in cash segment while DII net Buyers

Most active CE 5300 – 5400 while most active PE 5300 – 5200 - 5100

Which indicates that 5200 levels should act as strong support but market is the king and shall go where it has to we are just trying to judge the probabilities of the market. Opening of gap up and down is squeezing the intraday players who carry the position overnight.

For tomorrow nifty shall remain bullish until it is  above 5257  with upward targets of 5289 – 5309 – 5341  with stoploss of 5245 below which nifty shall become weak with downward targets of 5213 – 5193 – 5161

Positional shorts on close below 5200  only until then try to buy near stop loss or play intraday levels.  Nifty swing shall change if close below 5200 WHICH IS MARKED BY PINK LINE for two days till then swing is Up

 Madhu  intraday levels