Market Outlook 17/07/08

Oil crashing down..is it one more manipulation now..!

Yesterday it was a bad day for indian market again as market went for deep selling and for today, positive global cues may result in higher opening. Light, sweet crude for August delivery fell $4.14 to settle at $134.60 a barrel on the New York Mercantile Exchange, after earlier sinking as low as $132. The drop follows a $6.44 sell-off Tuesday, crude's biggest since the Gulf War.The huge swings oil had in two day's is amazing as it dropped by more than $10 Tuesday and $7 Wednesday and it makes us think whether this is one more manipulation or is it really coming down..! The Dow took positives from this oil drop and rose 276.74 to 11,239.28. It was the blue-chips biggest one-day gain since April 1, when the index rose 391 points.The dollar was mixed against other major currencies, while gold prices fell. For today, be cautious if there is higher opening near 3900..- as remain below 3920, market is weak only and if nifty breaks 3920 then one more resistance is there at 3960.So, be cautious at higher levels and below 3900 supports are at 3850 and 3790.Inflation figures are expected to be announced later in the evening today.

Stock watch for the day:

Adlabs (395): Buy this with stop loss 388 for target 405-410