Market Outlook 04/09/08

Market to witness higher level selling today

It was huge buying in infrastructure, oil and technology stocks which lifted index to more than 160 points day before yesterday and day ending was near to big resistance.
Yesterday's U.S revelations on the nuclear deal is too bad and it seamed U.S has kept india in dark and in Embarrassing situation on nuclear deal now.

The important points of this revelations are:

* The US has given no binding fuel-supply assurance to India

* No US consent to India's stockpiling of lifetime fuel reserves for safeguarded power reactors

* US civil nuclear cooperation is explicitly conditioned to India not testing ever again

* The US has retained the right to suspend or terminate supplies at its own discretion

* The letter makes clear that the 123 Agreement has granted India no right to take corrective measures in case of any fuel-supply disruption

* The Bush administration's letter states that the 123 Agreement fully conforms to the Hyde Act provisions

* The letter assures Congress that the 'US government will not assist India in the design, construction or operation of sensitive nuclear technologies

Impact of this is bad for sectors like BHEL, NTPC , Reliance Infra, Rolta Cairns etc.Though the final impact depends on NSG meet outcome shortly.
On global front, The Dow Jones industrial average rose 15.96, or 0.14 percent, to 11,532.88, after rising by as many as 37 points and falling by as many as 100.Light, sweet crude futures ended the day down 36 cents at $109.35 a barrel on the New York Mercantile Exchange.For today, nifty will face strong resistance at 4545 first and then if gets past this resistance will face another resistance at 4585.Heavy selling is expected in either iof these two resistances.Downside supports are at 4440 and if breaks that, super strong support at 4380.If there is gap down opening, buying will come from lower levels

Stock watch for the day:

Today's calls only for clients