Market Outlook 03/07/08

Will the market sustain its momentum..!

It was huge buying from lower levels yesterday and that made nifty zoom to 4108 from 3848 (whopping 260 points) in a single day.Higher level selling is expected today and it's difficult to maintain the same momentum today also.Crude oil hit a record $144.32 a barrel in after-hours trading after reaching a record settlement of $143.57, an advance of $2.60 on the New York Mercantile Exchange as the government reported a bigger-than-expected drop in U.S. supplies and as investors worried about tensions in the Middle East.The Dow fell 166.75, or 1.46 percent, to 11,215.51, the lowest close since August 2006.Shares of General Motors Corp. plunged Wednesday to close below $10 for the first time in more than half a century, on worries about the company's cash needs and speculation about a possible bankruptcy protection filing down the road.So, still so much of negatives are emerging, but market is almost into making the long term base around 3700-3600.For today, if nifty moves above 4110, it will first try for 4165 and failure to cross will invite heavy selling and if breaks 4165 then 4200-4220 will be very very tough resistance to cross for sure.On downside, below 4100 nifty wil again try for 4000 support zone and break of it will turn the things bearish again.

Stock watch for the day:

Today's calls only for clients