Short NIFTY & Bank NIFTY - Oct 9th '12 to Oct 15th '12

I had given a sell call on Sep 26th for 3 bank stocks ICICI Bank, Bank of Baroda & Kotak Bank.

http://analyzestockmarket.blogspot.in/2012/10/banks-sell-calls-oct-12-series.html

Almost every other bank stock is looking stressed and mainly that Bank NIFTY as an index has started to show weakness exactly the same way NIFTY looks now

From Elliott wave analysis perspective both the indices have made a 5 wave steep impulsive wave and now correction of wave A,B & C will take the Bank NIFTY to 10780 levels and NIFTY to 5530

Short Bank NIFTY at current levels and keep shorting at rise an aim for a target of 10780 to 10800

BANK NIFTY

Parabolic SAR at the top of the candlestick chart with MACD converging at the top indicates weakness in Bank NIFTY as an index

Target - 10800 to 10780

NIFTY

From 5720 to 5815 was a steep run indeed I had weighed only 10% chance of this happening expecting a correction at earlier levels of 5720 which should have taken NIFTY to 5400 before Oct series however as we all know markets do not always listen to us, do they?. The beauty of stock market is that even though it is  tough to predict the exact move, it always gives you enough indication that the fall or rise is always near

Now looking at last phase of NIFTY rising up it gives us the confidence that it is pretty much exhausted and profit booking and some domestic/global cues can get NIFTY into correction phase as per Elliott wave analysis

Short NIFTY on every rise and target close to 5530 as target 1 and slipping below that target 2 of 5350

Target 1 - 5530

Target 2 - 5350