caution ahead...

today nifty touched green resistance line and closed below it.

what a coincidence...

yday technical analyst Mr. Anil Maghnani said on media that nifty could correct from 5095 and sensex from 17330 and Mr. Ashwani Gujral said in a day or two maybe next week we could see correction upto 4700.

i had also arrived at same lvls few days ago by my analysis.

lets see whether reaction comes near these lvls or mkt rallies further without correcting.

update on my ew analysis...

no wave counts changed till now.

as mentioned earlier, the V-3-iii is in full speed which may terminate near 5095. likewise V-3-iii on sensex might terminate near 17332. at present iam sticking to this assumption.

after iii is reached we can have a correction which may last upto 4678.

then a rise from there, which after crossing top of iii, might target 5461 (broader V target) or 5771 (V-3-v) target. This is the final target of the nifty for the multi-year bull run.

likewise sensex may correct from 17332 to 15975. then a rise from there which after crossing top of iii, might target 19528. This is the final target of the sensex for the multi-year bull run.

this completion can happen by this year end (2007), at the earliest, or upto april 2008.

the completion will be followed by a big correction upto minimum 4366.70 or 4558 or maximum 3726 or 3918 depending upon final target of V and whether that correction will be of wave V only starting at 2595.65 or the complete super cycle I-II-III-IV-V starting at 920.

there will a fresh bull run to begin after that.

if ttml closes above 43, it has good chance of reaching 52.55 in near term.

in the morning i had given some hints(later removed) on shorting rel, rnrl and rpl.

icicibank stock has given breakout, it is overbought but it can be bought with trading cl sl 1010 for tgt 1052/1100/1135 .

buy techm(cl sl 1298) and hcltech(cl sl 286) at cmp for very short term cash delivery.

increase the 4951 by 7.50 points every trading day.

nifty support and resistance lines...

nifty support and resistance lines.

thick blue line resistance coming up at 4951 for 25th sep 2007.

if a correction starts from 4951, initial support is near 4840 and good supports will come in the zone 4588 to 4771.

update on my ew analysis...

we might have the current rally upside upto 4896,
then a correction upto 4650 [ i.e iii-(iv) ]
and then the iii-(v) going up.

my possible upside target for V-3-iii-(v) i.e completion of the iii,

when,

the V-3-iii assumes equality with V-3-i wave at 5095.65.
corresponding V-3-iii on sensex chart assumes equality to V-3-i at 17332.60.