Market Outlook 17/09/08

As told, 3900 did hold the key

As expected 3900 was the key and for now nifty didn't break that and moved near to 4100.It was massive fall in 2-3 days because of Lehman brothers bankruptcy and the fact that it has its position in many of indian stocks, there might be one more fall after some raise in the market.On global front, the U.S. government agreed Tuesday to provide an $85 billion emergency loan to rescue the huge insurer AIG and improve U.S economy and Barclays PLC said Tuesday it had agreed to acquire Lehman's North American investment banking and capital markets businesses for $250 million in cash and Federal Reserve Chairman Ben Bernanke and his colleagues decided to keep a key interest rate steady Tuesday.The Dow Jones industrials gained 141 points after the Fed's action soothed market anxiety over the financial system.So, on these positive cues indian market might move todaya nd if nifty gets past 4120 resistance it will zoom towards 4165 and then 4220 big resistance.On downside, below 4120 nifty has supports at 4040 and 3980.There might be gap up opening and caution is required as selling might again come from higher levels.Today's last hour action is very important also.

Stock watch for the day:

Kotak Bank (567): Buy this with stop los 559 for target 582-594