Market Outlook 23/07/08

Market in too bullish mode with decline in crude and our govt survival


At last the much awaited No-Confidence motion got through in favor of the government as expected.Yesterday market got enough clues about this government survival and huge buying was also seen in the market.Global cues are also very positive as the Dow rose 135.16 to 11,602.50. The blue chip index rose 400 points last week, but ended Monday's session slightly lower.A barrel of light, sweet crude tumbled $3.09 to settle at $127.95 on the New York Mercantile Exchange, down nearly $20 from its record high of $147.27, reached just weeks ago.A $3 drop in oil -- which took crude's decline in recent weeks to nearly $20 a barrel -- persuaded some investors to wade back into equities.For today, taking all these positive cues, nifty will open with huge gap up for sure and nifty above 4265 will face resistance only at 4375 and then 4440 and if nifty opens around these levels and unable to cross, some selling will definitely come from these levels.So, don't go for buying blindly today.Nifty will have supports at 4265 and 4220 for today.Watch the action in this week.

Stock watch for the day:

RCom (467)-Buy this stock with stop loss 456 for target 485-490