Market Outlook 01/07/08

Fear of breaking 4000....!

Yesterday, it was allround panic which took nifty to make a low of 4022 and till nifty saves 4000 big support, there will be some upside and today also low opening will invite buying, but higher levels will face selling pressure again.Fear of breaking 4000 is more as buying is still not coming strongly.Probably there is still more downside left in the market and one thing is sure-that long term stock picking time is nearing....yesterday, DJIA and S&P 500 closed with minor gain and Light, sweet crude for August delivery lost 21 cents to settle at $140.00 a barrel on the New York Mercantile Exchange. In early electronic trading, the contract hit a record $143.67. For today, nifty will face first resistance at 4065 and if crosses that 4110 will be very very tough resistance and heavy selling might come there.On downside, 4000 is very strong support and below that one more support at 3975.

Stock watch for the day:

Axis Bank (605): In lower opening, buy this stock with stop loss 585 for target 620-625.