Market Outlook 06/11/08

Market at the edge of big support..!

It was a very bad day of trading for indian market yesterday as nifty directly broke down from 3240 resistance area to test major support around 2950.On global scenario, cues are negative as The Dow Jones industrial average fell 486.01-points to close at-9,139.27 to their fears of a deep and protracted recession after Barack Obama's presidential victory.Although the market expected Obama to win the election, as the session wore on investors were clearly worrying about the weakness of the economy and pondered what the Obama administration might do.Among financials, Goldman Sachs fell $7.57, or 8 percent, to $87.43. Citigroup fell $2.05, or 14 percent, to $12.63, while Bank of America Corp. dropped $2.78, or 11.3 percent, to $21.75.The dollar was mostly lower against other major currencies, while gold prices fell.Light, sweet crude dropped $5.23 to settle at $65.30 a barrel on the New York Mercantile Exchange.For today, nifty is all set to break crucial resistance of 2950 and maybe in the opening bell..! and on break of 2950 it will go to 2900 first and then 2845 strong support will be tested.On other side, if nifty gets past 3000, it will face strong resistance at 3050 and 3080 where heavy selling will emerge.One can witness heavy volatility in today's market.Heavy buying might come only if nifty gets past 3080 strong resistance.

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