Market Outlook 26/06/08

Global cues positive but expiry will show volatility

Market as expected opened weak yesterday by making low just below 4100 and picked up from there to climb above 4200 to close around 4250 and now Federal Reserve left interest rates unchanged and The Dow Jones industrial average closed up 4.40, or 0.04 percent, to 11,811.83, after rising more than 100 points shortly after the Fed announcement.Crude oil fell $2.45 to $134.55 a barrel on the New York Mercantile Exchange. Gold prices also slid, while the dollar weakened against most other major currencies.Wit these positive global cues and also nuclear deal being potponed indian market may continue moving upwards and nifty above 4260 will hit 4310 first and if breaks that, then final big resistamnce will be in the range of 4350-4370 where heavy selling might come and today also being expiry day, one has to be cautious at higher levels.On downside, nifty has strong support at 4220 and if break of that may take nifty towards 4190 and then 4155 support.

Stock watch for the day:

NTPC (157): Short this stock at higher levels with stop loss 165 for trget 153-148