Market Outlook 31/07/08

Expiry day volatility today

After nifty started moving forming a base at 4160, it made a high of 4327 yesterday and moving towards 4400-4500 as told and today being expiry day, lots of volatility will be seen in the market.There might be a gap up opening today and higher level selling might come in this expiry day.On global scenario, Light, sweet crude for September delivery jumped $4.58 cents to settle at $126.77 a barrel on the New York Mercantile Exchange, after earlier rising as high as $127.39. It was crude's biggest one-day rally since July 10, when prices ended $5.60 higher. Oil closed $2.54 lower on Tuesday at $122.19 a barrel.
The Dow Jones industrials rose more than 180 points, bringing its two-day gain to more than 450 after a rebound in financial stocks and optimism about private sector jobs.The Dow rose 186.13 to 11,583.69.The dollar was higher against other major currencies, while gold prices fell.For today, nifty above 4325 wil go towards first resistance at 4355 and then at 4400 and if nifty is below 4325, supports are at 4265 and 4240.Positive closing expected today.

Stock watch for the day:

Axis Bank (679): Buy this stock in dips with stop loss 662 for target 690-700