Nifty UP move continues

Nifty continues its move up and broke out of a narrow range it has been in for the last few days. The trend is clearly UP and its best to stay with the trend till the market tells us that the trend is now DOWN. The trend is your friend till the end when it bends!

The next target for this up move is 5300.

Stay Long or be wrong!

The current trend for the Nifty is UP. There is no point fighting the trend. Most of the retail investors or fund/wealth managers i interact with are convinced of a crash. So they are sitting on the sidelines or the more aggressive ones are short. No one can rule out a crash and i personally feel a correction will happen after Nifty reaches the 5500-6000 territory but it is best to let the market tell us that.

the Nifty has tested 5000 yesterday. If it closes above 5000 convincingly next week there will be euphoria. Retail who has been left out of the rally will throw their towels and jump in. The climb from 5000-5500 may be very swift.

As of now the trend is UP - so the current motto is Stay Long or be wrong.

Nifty targets based on Elliott wave count

1) Long term target for the Nifty based on Elliot wave count and Fibonacci predictions

We are now part of the 3rd wave which started in October 2008. Targets are 13,000 for this wave and 20,000 for the 5th wave over the next 5-10 years



2) Short term target for the Nifty based on Elliot wave count and Fibonacci predictions



We are now part of the 5th wave in the smaller timeframe. The target for this move is in the 5400-5600 region



Please note - these are projections. However the market is a strange creature and does what it wants. It is prudent to trade with stop losses with the intention to protect capital.