The collective prayers that emitted from the Dalal street were answered last week, and answered in style. The NDA is home with a comfortable majority and definite signs of economic revival has buoyed the spirits of even the most pessimistic of investors. The 266 points rise recorded on 7-10-99 says it all in no uncertain terms. So, where are we headed now?

A closer look at the long term picture shows us that the five wave sequence from 3183.47 (28-04-99) could still be continuing. Over the last one month, we had based our counts on the assumption that the move from 3183.47 was complete and the retracement of the wave from 3183.47 to 4965.79 (30-08-99) was on. But the correction that followed was too short, both time wise and points wise to qualify as the fourth wave from 2741.70 (30-11-98). So that leaves us with the possibility of the fifth from 3183.47 having commenced at 4627.04 (05-10-99).

The target for this wave lies between 5047 and 5728. This wave is quite likely to end around 5329. In case the upward move continues, 5600 will definitely rein in the surge. The peak formed over the next few days should be the top for this year, 1999. Though, it is difficult to foresee the reason for the market falling drastically, a corrction is bound to set in soon.

The momentum generated last Thursday and Friday should last, at least, till the early part of this week. A firm start will face its initial resistance from 5042 and then from the previous peak of 5091. Once these hurdles are crossed the 5139 – 5159 zone can cause a hic-cup. Another indomitable rally will mean that the sensex will be at 5237 on Monday itself.

In case, reaction sets in after a minor rally, the supports will be at 4985, 4940 and then 4899. The open gap between 4689 and 4815 will be another support area in the event of a correction. Only if the sensex falls below 4689, do we have to start worrying.

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