Market Outlook 31/10/08

The level of 2740 still showing crucial trend

After a break of one day, market will resume today.It was a volatile day on wednesday with nifty feeling pressure at higher levels and the trend is expected to continue today also.On global front, The Dow Jones industrial average went up nearly 190 points with less volatility after the Commerce Department's report that GDP fell at an annual rate of 0.3 percent during the third quarter -- its worst showing in seven years. Analysts expected a 0.5 percent decline in GDP, the broadest measure of economic growth or contraction, but while the report was better than expected, it still pointed to an economy that is shrinking.The new report said Americans' disposable income fell at an annual rate of 8.7 percent in the quarter, the largest in records dating back to 1947 and the worst still doesn't seem to be over yet.A collapse of the housing market and locked-up lending have produced the worst financial crisis to hit the country in more than 70 years.To cushion the fallout, the Fed slashed interest rates on Wednesday by half a percentage point to 1 percent, a level seen only once before in the last half century.The Dow Jones industrial average rose 189.73 to close at 9,180.69.On Thursday, the dollar was mixed against other major currencies, while gold prices fell.Light, sweet crude fell $1.54 to settle at $65.96 per barrel on the New York Mercantile Exchange.In indian market today, nifty is facing continuous pressure around 2740 as mentioned on wednesdaya nd today also 2740 will be crucial trend and if nifty stays above that, then it will move to 2800 and if fails to cross 2740 on higher side, it will go down to test 2620 great supporta nd break wil take to 2575.Overall interesting weekend.

Stock watch for the day:

Today's calls only for clients