Market Outlook 19/09/08

Market may open gap up today

After yesterday's positive close, the momentum likely to continue today also.On global front, Dow Jones industrial average jumped 410 points to close at 11,019.69, its biggest percentage gain in nearly six years after the Bush administration prepared a plan to rescue banks from financial crisis-though details of the plans are still in progress.Light, sweet crude for October delivery added 72 cents to settle at $97.88 a barrel on the New York Mercantile Exchange.In indian stock market, inflation numbers have been announced and it has come at 12.14 % for the week-ended September 6 from 12.10 % a week ago and this is a bit negative.For today, nifty above 4045 may directly test 4120 resistance and if gets past 4120, then it will face strong resistance around 4165 range and above that 4220 is final strongest resistance.Supports are at 4000 and 3955 for today.Watch out for the final hour action today as today being the week end, it will be interesting to watch.

Stock watch for the day:

SBI (1566): Buy this stock in dips with stop loss 1540 for target 1590-1620