Market Outlook 28/08/08

Market may face severe selling at higher levels

Though market opened above 4300 yesterday, it couldn't sustain above 4340 for most part of the session nad for today 4340 will act as key and below that it might even crash to 4200.Today, market will be very volatile due to expiry and also inflation nubers to be announced in the evening.On global front, The Dow Jones industrial average rose 89.64 to 11,502.51 after rising more than 140 points.Light, sweet crude rose $1.88 to settle at $118.15 per barrel on the New York Mercantile Exchange on worries that Tropical Storm Gustav could enter the Gulf of Mexico as a hurricane and disrupt oil and natural gas production.More worrying factor is also of Reliance Industries breaking down all its supports.For today, nifty above 4300 will face strong hurdle at 4340 where heavy selling not ruled out and if it crosses 4340 one more heavy resistance is at 4380 and on downside 4280 is the strong support and once it breaks 4280, panic will be created in market and nifty will slip to 4250 first and then to 4200.

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