Market Outlook 21/07/08

Market will witness uncertain moves

Though Indian market closed positive on friday, lot's of volatility is expected today with heavy political actions with government survival is still a big question mark now..!! Global factors are a little positive only and Oil rose towards $130 a barrel after its biggest one-week slide on record as inconclusive talks between Iran and world powers over Tehran's disputed nuclear programme dimmed prospects of ending the row.U.S. light crude for August delivery was up 91 cents at $129.79 after rising as much as $1.18 earlier, a small bounce from last week's over $16 slump, the biggest decline in dollar terms since futures began trading in New York in 1983. In percentage terms it was the steepest sell-off since late 2004.The Dow Jones industrial average rose 49.91 points to 11,496.57.Today and tomorrow these factors may not effect our market much unless theer comes a very big news.Our political activities have reached it's peak now as both the govt and anti parties are claiming they have numbers and it makes us remember the time Mr.Vajpayee lost the confidence motion by a single vote..!!
Will the history repeat itself..! only time can tell now .For today, on higher opening go short.If nifty moves above 4115, it will move to 4180 first big resistance and then 4220 will be very tough resistance to cross and if nifty remains below 4115, it will remain weak only and testing 4050 and 3990 may be on cards then.

Stock watch for the day:

RCom (435): Short this at higher levels with stop loss 460 for targets 430-425