Market Outlook 03/11/08

Positive global cues can help nifty today

It was a very volatile day of market opening up with a huge gap up on friday and then sudden crash and again move up in the last hour and closing strong.Global cues are still positive for today also, but upper level is seen exerting pressure in the market.Another positive news is of RBI cutting CRR by 1%, repo rate by 0.5% signaling softening of interest rates to prop up growth.The SLR cut would inject about Rs 40,000 crore into the banking system.The Dow Jones industrial average gained 144.32 points, or 1.57 percent, to 9,325.01.Financial shares, led by a more than 8 percent gain in JPMorgan Chase lifted Wall Street as the interbank borrowing cost eased.The interbank cost of borrowing dollars, sterling and euros again eased in overnight markets, lending support to equities.But economic data on Friday that showed U.S. consumers are tightening their belts offered more evidence of a deep slowdown, though the market appeared to shrug it off.Oil fell nearly $2 on Friday as weak demand and the global economic crisis put crude on track for the biggest monthly drop ever.U.S. crude fell $1.82 to $64.14 a barrel.It was the sharpest economic decline in seven years for the United States, the world's largest oil consumer, provoking further falls across commodities and global stock markets.For today's market in india, Nifty might turn positive only above 2920 and if stays above 2920, it will hit 2945 first and then 3000.But, if nifty fails to test 2920, it will come down sharply towards 2850 support first and then to 2790.

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