Nifty Page:21.08.2012

Pre-Market View:

As was mentioned earlier also,this 5v cannot take it above 5444 as both 5iii as well as 5v can not be extended.
5v was taken as an Ending Diagonal wherein
sw1=5294-5330=36
sw2=5330-5309=21
sw3=5309-5356=47
sw4=5356-5329=27
sw5=5329-5390=61

However,by going above 5390 on Friday,an indication was given that 5v may still not be over(though the Probability of it being a (false)move to shrug-off  close watchers like me also cannot be ruled out).
In such scenario shorting either close to 5440 with stop loss at 5445 or on breaking of the blue trendline on charts above with stop-loss at nearest high would be the most prudent trade initiation.Mentioning probable patterns within this small range has to be avoided but I am mentioning one of these ---

And this last leg of 71+ points would also be a 3 wave form. And for this pattern to play out 5329.55 should not be breached.

EOD 21.8 2012:

However,no negative divergence has been noticed so far-- in 5 minute charts.

On Hour charts however higher prices in Nifty were not matched by higher RSI tops:

Similarly in Daily charts:

What more can I say?