Market Outlook 26/08/08

Market facing severe volatility due to expiry

Though market opened strong yesterday, it struggled exactly around first resistance given at 4380 and even for today, 4380 will hold the key and if nifty doesn't get past 4380, it will be weak for today.Global cues are also negative today.Financial worries dragged U.S markets down again and DOW dipped more than 240 points and Bond prices also jumped as investors fled to the safety of government debt.The Dow industrials fell 241.81 to 11,386.25.Light, sweet crude rose 52 cents to settle at $115.11 per barrel on the New York Mercantile Exchange after Tropical Storm Gustav formed in the Caribbean.For today, if nifty trades above 4350 then first resistance will come around 4380 and failure to crossover will invite heavy selling again and downward supports are at 4300 and then 4250.Be carefull if nifty opens weak, as it might recover later.

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