mkt ahead...31st may 2010...

what a splendid bounce we had from 4700-4800 lvls in last 2-3 sessions. it was anticipated that we get a support there. we did see some amount of buying and short covering there. there was a net cash buying by both fii's(410 cr) and dii's(342 cr) on friday.

scenario fits perfectly in my ew case I given much earlier. can't confirm at this stage if all the corrective/down waves are complete. looks like perhaps a process of short to medium term bottom formation is taking place.

monday or tuesday nifty may undergo slight amount of profit booking upto 4930-4950. near to short term traders may utilize this dip(if it occurs) to buy positions with a tgt of 5200/5220 with cl sl of 4780 or so.

if any large selling comes say after nifty reaches 5200 etc towards 4700 with a large cash buying support from large fii investors, it would be one of the clues to be utilized for buying for medium term investors later, or whenever such an uptrend gets established.

till then its an intraday to near term trader's mkt.