Market Outlook 21/10/08

Positive global cues to guide indian market

It was a very very volatile trading on positive side yesterday with nifty making a high of 3238 and closing around 3100 level.On global front, there are more positive signs which will help indian market for sure.Bank-to-Bank lending rates eased further showing the easing of credit markets which were of main concerna dn DOW reacted positively yesterday by moving above 400 points.The credit markets were gradually responding to the series of bailout measures by governments around the world, including a joint U.S. and European plan to buy stakes in private banks to boost their lending.The Dow Jones industrial average rose 413.21 to 9,265.43.Light, sweet crude rose $2.40 to settle at $74.25 a barrel on the New York Mercantile Exchange.On indian market, yesterday's RBI's announcement to cut Repo rates by 100 bps to 8% with immediate effect is a positive for market and also RBI will announce its half-yearly credit policy on Friday, another rate cut is possible.For today, if nifty moves above 3145 it may directly test resistance at 3240 and if nifty crosses 3240 it may shoot upto 3300-3340 also today.On downside, 3100 is one support for nifty and if breaks 3100, then 3060 is super strong support for today.

Stock watch for the day:

RCom(231): Buy this stock with stop loss 225 for target 245-255.Below 226 it is not a buy.