Market Outlook 10/07/08

Always remember that the future comes one day at a time....

It was a very good day for market yesterday and now near to crucial resistance at 4220-4245 and failure to cross this will invite heavy selling again.If the market opens low, buying will emerge from lower end.Higher levels are exerting pressure and lower level invite buying and this will continue today also.Oil prices remained a concern as they finished about where they began Wednesday after jumping more than $2 earlier on reports of lower U.S. oil stockpiles and an Iranian missile test settling at $136.05 a barrel on the New York Mercantile Exchange.The Dow fell 236.77, to 11,147.44 a day after rising more than 150 points.The dollar fell against other major currencies and Gold prices rose.Indian politics still not settled and even though Mulayam seems to have given his support to the government, there is not guarantee that government will survive and until the government prove their majority, uncertanity will continue in the market.For today, nifty above 4165 will face strong hurdle at 4220-4245 and below 4160 will have strong supports at 4115 and then 4060.

Stock watch for the day:

ICICI Bank (622): Short this stock around 630-635 with stop 645 for target 615-610

Black monday for indian market..!

Where market is heading now..!

Already markets are crushed even though it is oversold as there seems to be more pressures of inflation and Government survival problems as it was evident in friday's crash and now nifty has already broken all supports and is near to 4300 and if at this stage government falls, where will nifty go....! Bahujan Samaj Party chief Mayawati has withdrawn her party's support to the Congress-led United Progressive Alliance government at the Centre.The BSP has 17 members in the Lok Sabha, which has an effective strength of 543. The UPA currently has the support of 220 members. The Left parties, which have 59 lawmakers as a block, extend outside support to the government. Dow fell more than 200 points yesterday and for india it will be a black monday and maybe with huge gap down....!
According to me, even if government falls here, timing also plays an important role and if the bad news comes of government fall when nifty is around 4200, impact might be too deep and nifty might see 3600-3500 straight and if th government survive for some more time and falls when nifty is at around 4800, then nifty might dip to 4000-3900 levels.
On otherway round, if government doesn't fall 4100-4000 level will be the bottom for this correction
and nice time to pick some good stocks also....
This week will be full of activity in political circles and in stock market, it is expiry effect....so, get ready for the action packed week......