Market Outlook 20/06/08

Market struggling to find the trend ....

Market is at the edge of the support and still there maynot be much downside today also.Crude oil futures fell $4.75 to settle at $131.93 per barrel on the New York Mercantile Exchange after China disclosed plans to raise prices for gasoline and diesel fuel by 16 percent and 18 percent, respectively.While this is some positive news for the market, left has come openly saying that they will withdraw support to the central government after government decided to go ahead with nuclear deal with U.S and this news is negative for the market.Hence market is struggling to find the trend with positives and negatives.Today, even if market takes support around 4480-4490 and moves up, upper level will exert pressure again.Nifty will face first strong resistance around 4540 and above that 4585 will be very tough resistance for today.Below 4480, nifty may fall directly to 4440 support area.Banking stocks will be in the limelight today also.Inflation figures are expected today and there are chances of market trading flat after initial moves till the inflation figures come.
Prime Minister has commented today that he will resign if nuclear deal fails and this seems to be getting hotter day by day now and if left withdraws its support and government falls, there might be a huge crack in the market....watch out...government should stay for market recovery....

Stock watch for the day:

Cairns (284): If cairns remain below 286, short it for target 276 and if moves above 286 it is not a short.