Market Outlook 29/09/08

Market may show some recovery today

Though market crashed on friday and closed below 4000, we have some positive news in nuclear deal today as mentioned on friday (123 agreement) and if nifty holds on to support 3970 today, it might move up and there might be gap up opening also.
On global front, The Dow Jones industrial average rose 121.07 to 11,143.13 and though there are still concerns about U.S governments bail out plans, sentiments are little positive now.Congressional leaders and the White House agreed Sunday to a $700 billion rescue of the ailing financial industry after lawmakers insisted on sharing spending controls with the Bush administration. The biggest U.S. bailout in history won the tentative support of both presidential candidates and goes to the House for a vote Monday.The final result of this bail out plan will be seen in few more months and will be interesting to see how the financial sectors perform henceforth.In indian market today, if nifty moves above 4000, it will face resistance around 4040 and then 4065 and if these are taken off then it can move to test 4115 straight.There might also be gap up opening today and even if there is gap down opening, there might be recovery coming in later.Only if nifty stays below 3970, things might get weak.

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