Market outlook 08/07/08

Volatile market for next 2 day's....!!

Though market opened strong yesterday, it failed to cross the first hurdle at 4115 and tumbled.Moreover selling in reliance industries in the last hour brought the index down at the end closing near 4000 again.Negative news keep coming in which is not letting market move much and these day's as i said, market movers are "NEWS".Tomorrow is again a big day of nuclear deal signing and lots of volatility might be seen in next 2-3 day's for sure. MTN deal with RCom will be decided mostly today and there might be some moves on RCom on this news also.Market is definitely oversold and will move strongly on upperside once this clear picture emerges in political side.The Dow fell 56.58 to 11,231.96. Light, sweet crude fell $3.92 to close at $141.37 a barrel on the New York Mercantile Exchange, after falling by more than $5 a barrel at times is also a good sign for the market and if the inflation also comes down below 10 %, it will be a major plus for the market and after all these bad news flow all these day's we may be in with lots of positives coming in the coming day's....! For today, if nifty breaks 4045 it will again retest 4115 resistance and failure to break will invite selling again and on downside, if nifty breaks 4000 strong support, it will retest 3960 support again.

Stock watch for the day:

Tata Power (1085): Short this stock on raise with stop loss 1130 for targets 1060-1045