Market Outlook 05/11/08

Market in bullish mode and near to some hurdles

It was a good trading day yesterday with nifty closing above 3100 after initial down move below 3000.On global front, cues are very positive and The Dow Jones industrial average moved more than 300 points on U.S elections day.nvestors have overlooked a spate of bad economic data recently, including a report Monday from the Institute for Supply Management that revealed the worst monthly contraction in manufacturing activity.The dollar fell against most other major currencies, while gold prices rose.Light, sweet crude jumped $6.62 to settle at $70.53 a barrel on the New York Mercantile Exchange, a reaction to the slide in the dollar..The Dow Jones industrial average closed 9,625.28-up 305.45 points from the previous close.European shares have also been boosted by the ongoing decline in interbank lending rates ahead of expected interest rate reductions Thursday from the European Central Bank and the Bank of England.For today if nifty moves above 3150, all round buying might take nifty towards 3220 first resistance and above that 3265-3280 is one more big resistance zone.Downside supports are at 3100 and 3070 and if 3070 gets broken, it will move toward 3020 strong support for today.This U.S elections has taken the centre stage in this bad market conditions world over.Market is also over bought and interesting to see till which point this rally extends now.

Stock watch for the day:

RCom (250)-Watch this stock and short it on raise with stop loss 261 for target 240-235.Above 261, it is not a short.