Market Outlook 29/08/08

Market near major supports

Yesterday nifty once broke its support of 4280 came down heavily to 4200 as expected and there was also heavy selling from index heavy weight Reliance Industries.Now the last big support is at 4160 on any downside below 4200. Now Inflation numbers dropped to 12.40 from 12.63 and this is little positive for the market and global cues are also positive as The Dow Jones industrial average jumped more than 200 points yesterday to close at 11,715.18-up by 212 points after a better-than-expected reading on the gross domestic product and a drop in jobless claims gave investors some reassurance that the economy is holding up.Light, sweet crude fell $2.56 to settle at $115.59 on the New York Mercantile Exchange.So, taking these positive cues if nifty holds on to 4200 can make 4280 again which has to be watched out and failure to cross can invite heavy selling again.Below 4200, nifty has strong support at 4160 and break of that may create panic.

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