Market Outlook 27/06/08

Market facing tougher situations....

Though expiry got over yesterday and made nifty close above 4300 , it was just a roll over effect and real trading will start from today again and now all the global cues are negative and overthat, nifty is facing a very very strong hurdle at 4350-4370 range which holds very very important for now and trading below this level nifty will not be stable for sure.All Asia, Europe and U.S markets are trading in red and its just a matter of time now for indian market also react to this.Oil futures shot past $140 after the head of OPEC President Chakib Khelil was quoted as telling a French television station that oil could rise to between $150 and $170 per barrel this summer before pulling back later in the year and Libya said it may cut oil production.The dollar was mixed against other major currencies, while the price of gold jumped.Sweet crude went as high as $140.39 and to a record settlement of $139.64 on the New York Mercantile Exchange.The Dow dropped 358.41 points, more than 3 % to close at 11,453.42 - its lowest finish since Sept. 11, 2006. For today, if nifty moves above 4330 it will test 4350 and further upside is difficult and even if gets past 4350 also 4370 hurdle is major one for today and break below 4300, nifty will have support at 4260 first and then 4220 and lastly 4190 and if breaks that-TOTAL PANIC IN THE MARKET. If market opens gap down, be cautious at lower support area as nifty might pull up again and if there is gap up opening, definite selling will come today at higher level.Watch the levels of supports and resistances today.Market doesn't seem to be settling down fast because of the global factors and also because of indian political situation.Inflation figures are expected to be high again and it may also effect in recovery.

Stock watch for the day:

RCom (496): Short this stock at higher range with stop loss 515.5 for lower target 485 and 475