Market Outlook 16/06/08

Saudi to boost oil production....

Market is again rangebound struggling around 5450 resistance.In electronic trading on the New York Mercantile Exchange late Sunday, crude oil futures were down 54 cents at $134.32 a barrel and moreover Saudi Arabia plans to increase oil production by 200,000 barrels a day next month and U.S-Europian markets are also trading in positive now.Taking these positive clues nifty might move above 4540 and if breaks 4540, nifty might move twoards 4600 first and if breaks that will face strong resistance around 4635 range where selling might emerge again.Below 4540, nifty will remain weak and will test support at 4490 and if breaks that will go towards 4460 strong support on downside.The only negative news for now is of fight between Anil and Mukesh Ambani and the effect might come to the market slowly if it doesn't get settled down fast.

Stock watch for the day:

Cairns (285): Short this stock on raise with stop loss 295 for target 280-275