Market Outlook 04/07/08

Nifty very near to form long term base now

These day's markets are too volatile and yesterday in the begining hours only it crashed below 3900 and though in the late afternoon it made a violent attempt to move above 4000, it didn't succceed as severe selling emerged again that took nifty back to 3900 levels and this shows that the bear market is still alive and strong, and yesterday's trading has confirmed that.The major concern for indian market is now seems to be the nuclear deal and the stability of the government.Once the threat goes off and crude eases then bullish breakout will emerge taking nifty above 4500 for sure.The news of 3 ministerial berths to Samajwadi Party may also boost R-Group stocks and we may expect blast in R-Group stocks again.It's all manipulations in the market and before that major blast, they seems to be taking R-Group to lower levels first and then blasting from bottom is a strong possibility.The Dow rose 73.03, or 0.65 percent, to 11,288.54.The dollar was mixed against other major currencies, while gold prices fell.Light, sweet crude settled up $1.72 at a record $145.29 per barrel on the New York Mercantile Exchange after trading as high as $145.85 - also a new record.For today, nifty will face strong resistance at 3975 and failure to cross this will invite selling and nifty is likely to test 3900 first and then 3850 is strongest support for today.Today being the last day of the week, market can be volatile again with moves on both sides.

Stock watch for the day:

ICICI Bank (572): Short this stock on break of 570 for targets 555-545. Above 570, it looks strong.