Market Outlook 16/07/08

Market in selling pressure even as crude dipping

yesterday it was a very bad for indian market as nifty broke strong support of 3850 and appear to be marching towards my target of 3600 given long back.Indian political uncertainity is continuing with government is clearly falling short of clear majority now and struggling a lot to show the clear numbers for staying in power and so, 22nd of this month will be the deciding factor.A barrel of light, sweet crude dropped $6.44 to settle at $138.74 on the New York Mercantile Exchange as traders bet that the weak economy in the United States and elsewhere will take its toll on global demand.The Dow Jones industrials on Tuesday had their first close below 11,000 since July 2006.The Dow fell 92.65, or 0.84 percent, to 10,962.54,trading at nearly two-year lows.Dow breaking 11000 is bad news and here nifty broke 3850 strong support.Let me tell you one thing here-NIFTY HAS STRONG SUPPORTS AT 3600-3500 RANGE (MY TARGETS GIVEN LONG BACK) AND SHOULDN'T BE BROKEN AT ANY COST AND IF BREAKS ANYTIME WE CAN SEE STRAIGHT 3000-3100 LEVELS.For today, if nifty breaks 3885, it will move towards 3940 resistance zone and selling will definitely come around that level and on downside if nifty breaks 3850, then move twoarsd 3800-3765 is a strong possiblity for today.

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