Market Outlook 22/08/08

Watch out for opening today

Overall it was a very bad for indian market yesterday as it crashed to make a low of 4270 and now that inflation figures came out as 12.63% for the week ended August 9 is again bad for the market and RBI CRR hike fear will be there again when they meet next because of this high inflation figures and on the global scenario, The Dow Jones industrial average rose 12.78 to 11,430.21. It was the second straight session of moderate gains for the blue chips after heavy losses the first two days of the week.Crude oil spiked above $5 a barrel as traders became rattled over increasingly hostile Russian rhetoric toward a U.S.-Poland deal to install a missile defense system in Eastern Europe- a move Moscow views as a threat and finally settled at $121.18 a barrel on the New York Mercantile Exchange.So, even now the cues are bad and though market is oversold, still some downside might be there.For today, if nifty breaks above 4295 it will find first resistance at 4330 and crossover will find another big resistance at 4380 and unless this level is crossed, any raise will invite selling and on downside, if nifty breaks 4270 support area, it will slide to 4235 first and then to 4200 support area.Today being the last day of the week, be carefull in trades.If there is low opening, be cautious in shorting as recovery may come from initial panic.

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