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Thursday, June 3, 2010

S&P CNX Nifty (5019.85 points)

Yesterday, the Nifty opened at 4970.75 points and after hitting a low

of 4967.05 points it moved up making a high of 5031.20 points and

finally closed the session at 5019.85 points, thereby recording a Net
Rise of 49.55 points on a day – to – day basis.
After a gap up opening, ONGC led the morning rally, but profit
taking was witnessed in the midsession and the Bulls were back in the
last hour, leading to a 50 points recovery. After big red candle,

yesterday we witnessed a bullish harami candle pattern on the daily
chart, which is a bullish signal for the short-term.

As per Research view: (Symmetrical pattern)

Wave-(G) = 4835 – 5373 = 538 (31 days)

Wave-(H) – 5373 – 4786 = 587 (27 days)

Wave-(I) – 4786 - ongoing (Till date 6 days of Symmetrical pattern)
As per the current scenario, Nifty might be forming wave-I of
symmetrical pattern, which is the last leg of symmetrical pattern and

we expect wave-I to take atleast 4-5 weeks. Until yesterday, it has

consumed 6 trading sessions.

Conclusion: Nifty has resumed its upward trend from the support
zone of 4961 levels (almost 50% retracements of the previous rise

from 4786 to 4973 levels). As per Elliott wave, wave-b of Wave-I
might have terminated yesterday & Nifty might entered in wave-c of
Wave-I on uptrend. We expect it to test atleast 5150 levels in the
coming sessions. Hence, we recommend holding your long positions
and buying in any dips for the price target of 5150-5200 levels in the

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