Market Outlook 24/10/08

Market likely to pull up from supports

It was a very volatile day for indian market yesterday after opening deep down and remaining there till mid afternoon and then sudden pull up and then again deliberate selling at the end.Expiry effects have started taking place now and market looks set for huge pull up towards 3500 !!.FIIS
short selling now banned by SEBI is also positive for the market.Things will change only if nifty breaks below 2850.If nifty holds 2850 and closes above 3050, sentiments will turn very positive for expiry.On global scenario, some positive cues are there for today.The Dow Jones industrial average rose 172.04 to 8,691.25, after rising 277 points and falling by 276 points during the session, witnessing huge volatility.The credit markets again showed signs of easing after locking up when Lehman Brothers Holdings Inc. declared bankruptcy in mid-September.The dollar was mixed against other currencies after jumping to multiyear highs Wednesday, while gold prices fell.Light, sweet crude rose $1.09 to settle at $67.84 on the New York Mercantile Exchange.Here in indian market, if nifty gets past 2985, it will move towards 3025 resistance first and after that it will be direct testing of 3085 and if gets past that, then all round buying will set in.Higher level is very interesting to see today as volatility will be too much again.On lower side, nifty has good support at 2915 and below that 2850 is very strong support and if breaks 2850, everything will crash.Overall an interesting weekend today.

Stock watch for the day:

Today's calls only for clients