Market Outlook 12/11/08

Market in downtrend below 2950..!!

It was a very bad day for market yesterday as nifty broke 2950 and closed below it and looks like one more testing of 2850 wil be on now and break might be severe.On global scenario, The Dow Jones industrial average shed 176.58 to 8,693.96 after falling by more than 300.The credit markets have eased a bit since Lehman Brothers Holdings Inc.'s bankruptcy in mid-September, but they remain tight.Light, sweet crude for December delivery fell $3.08 to $59.33 a barrel on the New York Mercantile Exchange. Late Monday, Starbucks Corp. reported lower sales across the coffee chain, and early Tuesday, Toll Brothers Inc. posted a sharp drop in revenue and said it was too difficult to predict what the luxury homebuilder's profit would be next year.Wall Street was also jittery as the nation's feeble automakers hope for a bailout from the federal government similar to the one given ailing insurer American International Group Inc. General Motors Corp., whose shares have plunged to 60-year lows, said late Monday it would cut 1,900 factory jobs on top of the 3,600 cuts it announced Friday.At the pump, gasoline prices are at a national average of $2.22 a gallon.The dollar moved mostly higher against other major currencies Tuesday, while gold prices dipped.For today, nifty will remain weak below 2950 and on downisde has small support at 2900 and then staright testing of 2850 is definitely on and if breaks 2850, fall might be severe.On upper side, nifty will face resistance at 2950 and 2985.Nifty will be positive only if manages to stay above 3000 and possibilities are very less.Be carefull on shorting if nifty starts trading above 2950 and stays above that.

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