Market Outlook 16/09/08

3900 will hold the key for the market now

It was a horror day for indian market as it crashed very heavily mainly due to 150 year old Lehman Brothers filing for bankruptcy.Lehman Brothers were holding shares in indian market also as FII's and these shares also witnessed huge crash.On global front it was real historic horror show as The Dow Jones industrial average lost more than 500 points its major crash since the day the stock market reopened after the Sept. 11, 2001, attacks.About $700 billion evaporated from retirement plans, government pension funds and other investment portfolios.The Dow industrials dropped 504.48 points to close at 10,917.51.Light, sweet crude for October delivery fell $5.47 to settle at $95.71 a barrel on the New York Mercantile Exchange - oil's first settlement under $100 since March 4.But this positive news of oil is not taken by the market as compared to financial crisis it is facing now.For today, nifty above 4080 will move towards 4120 strong resistance, where selling is again expected and if 4120 is crossed, then next strong resistance wil come only at 4165.On downside 3950 will be the support to watch out and then 3900 will be the strongest support and anytime this 3900 gets broken, then another huge crash might be witnessed in the market.

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