Market Outlook 25/07/08

Watch out Reliance today for market direction..!


After 5 day's of continuous rally, nifty took a break yesterday by falling from high and closing below 4440 support level and today also nifty will remain weak if doesn't break 4440 on upperside and on downside, 4365 will hold the key now and if nifty breaks this levels, then there will be more downside and move towards 4285 is also possible today itself.So, the level to watch out for today is 4365-4440 and any break of this range will be crucial for today.If nifty moves above 4440, then testing of 4500 is on again..! On global front, The Dow fell the most in a month as a report showing yet another drop in U.S. home sales and also the rising price of oil compounded worries about the economy The Dow Jones industrial average fell 283.10 points to close at 11,349.28.It was the biggest decline for the Dow since June 26. A barrel of light, sweet crude rose $1.05 Thursday to settle at $125.49 on the New York Mercantile Exchange after a drop of more than 5 percent over the previous two sessions. Earlier during Thursday's NYMEX session, oil hit an intraday high above $126.The only small positive is Inflation for the week ended July 12 is at 11.89 % versus 11.91% and Reliance Industries has posted 13.2% growth in its net profit at Rs 4,110 crore for the quarter ended June 2008 as against Rs 3,630 crore in the same period of last year.


Stock watch for the day:


Rcom (502): Watch this stock at higher levels and if fails to clear 515, will come down to 490 today and if breaks 515, it will hit 525-530 on upperside.