Market Outlook 16/10/08

Global market melt down again..!!

It was a drastic fall in indian market yesterday as nifty went for selling right from the opening and halted around 3300 support area which is likely to be broken in the opening bell today.Reserve Bank of India on Wednesday cut CRR (cash reserve ratio) by 100 basis points, or 1 per cent.This CRR cut will infuse Rs 40,000 crore (Rs 400 billion) into banking system.The RBI also increased interest rates on Non-Resident deposit schemes by 50 basis points, or 0.5 per cent.Though these measures are positive for indian market, global melt down may effect its sentiments today.On global scenario, The Dow ended down 733.08 at 8,577.91 after the government's report that retail sales plunged in September by 1.2 percent -- almost double the 0.7 percent analysts expected.Big U.S. banks started falling in line Tuesday behind the rejiggered bailout plan.Even though government came out in bailing out financial sectors, economy slow down seems to be continuing.The credit markets have been showing tentative signs of recovery, though they remain strained.Light, sweet crude fell $4.09 to settle at $74.54 per barrel on the New York Mercantile Exchange.In indian market, one can expect gap down opening today and below 3300, nifty will remain weak only.Downside supports below 3300 will be at 3265 and below that 3200 and 3160 will be the strong support.On upperside above 3300, nifty will face resistance at 3380-where heavy selling is expected.Onle above 3380, things will turn positive.If there is gap down opening, watch out for first support at 3265 and if not broken, buying might come from there.

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