Market Outlook 01/10/08

Will the market hold on at higher levels !!

Though indian market opened low due to global breakdown, it recovered remarkably well to move almost near to 4000 and will it stay above 4000 is a big question mark now as ADAG may have different plans and tomorrow's trading holiday may bring in volatility also.On global scenario, The Dow rose 485.21 to 10,850.66 after the historic fall yesterday.Though the U.S governments financial rescue plan failed, they are in for second attempt in improving credit crisis and though nothing has been still finalised, this upmove is not with full confidence as worries are still very much in investors and DOW can go down again.Light, sweet crude rose $4.27 to settle at $100.64 on the New York Mercantile Exchange. Oil fell more than $10 a barrel Monday as investors worried that a weaker economy would curtail demand.For today, nifty above 3920 will face tough resistance around 3970 and above that 4025 will be very very strong resistance for the day.Downside nifty has strong support at 3895 and then at 3860.One can expect volatile market in the begining of new month today.Be cautious at higher levels today.

Stock watch for the day:

Reliance Infra (790): Short this stock at higher levels with stop loss 820 for atregt 775-760.If moves above 820, don't be short on this.