All trends are up after completing short term correction in last week. March 2009 rally has not only formed new top but trading near all time high also and any day Indian markets may set new historical top as well as Wave 3 may test its minimum target of 6359. Trading within no men land possibility is high in this week. Sentiment extremely bullish threrefore previous top(6357) break out should be with force and Nifty must sustain above even after intraday or very short term correction.
Sentiment heated therefore intraday or very short term 1/2% corrections can be seen any day and it may be a part of consolidation also but until complete selling patterns will not develop till then even short term correction will not be considered. Market is bullish therefore it should be kept in mind that in bullish rally consolidation may happen at higher rates also after any positive development and continuous upmoves will be seen after regular consolidations. Short term correction should be considered after selling patterns minimum on daily charts.
1-Wave 3 chart:-
I am non stop told in last 1 year for Wave 3 minimum target at 6359 and Nifty made 6338 last Friday. Now next levels of Nifty are as follows:-
1- 100%- 6359
2- 113%- 6676
3- 123.6%- 6935
4- 127%- 7017
5- 138.2%- 7291
Wave 3 started on 13-07-2009 from 3919 and corection of whole wave will start from or near about of any of above levels. Complete selling patterns requires for short term correction and until that will not develop till then any down move will not be considered and continuation of ongoing upmoves will be expected at this moment.
Nifty will travel in no men's land above 6357 therefore Rocket like forceful moves may also be expected. Shorting should be done after selling patterns developments and higher levels can not be a base of shorting or selling because in bullish rallies unbelievable rates may also be possible. As bull rally is on and trade should be done along the trend but this fact should also be kept in mind that rally is 16 months old and correction may start from any of above level therefore stocks selection should be done with most care because many stocks are overbought also. Technical positions has been expllained and fresh investments should be done after minimum very short term correction with adequate stop loss.
2- Declining Channel Break Out chart:-
Declining channel broken out in previous week and strong rally seen therefore continuation of trend should be expected until fresh selling formations and reveral patterns does not develop on daily chart.
Strong rally is on and Very short term indicators are overbought therefore upmoves expected with intrady or very short term corrections in this week.