Market Outlook 05/08/08

Market may open positive on back of crude fall

Nifty reacted exactly from resistance area of 4440 yesterday and closed well above support.Market major Reliance industries didn't allow the market to recover much yesterday and will be interesting to see it's moves today as it is near to support area now.Global scenario looks ok with Light, sweet crude for September delivery fell $3.69, or 2.9 percent, to settle at $121.41 a barrel on the New York Mercantile Exchange. It was crude's lowest settlement price since May 5. Earlier, prices plummeted to $119.50, the lowest level since May 6.The Dow Jones industrial average fell 42.17 to 11,284.15 ahead of the Fed's meeting as energy and materials stocks declined following a broad drop in commodities.For today, nifty above 4440 will try for 4440 resistance again and failure to cross will invite selling again and if breaks 4440 then it will move to 4480 resistance and higher level some selling might come.On lower side, nifty has strong supports at 4350 and 4330.Unless these supports are broken there will not be much low today.Today's FED meeting will be again important and indications are Federal Reserve is expected to hold off raising rates.

Stock watch for the day:

Reliance Industries (2242): Watch this stock at higher levels and if fails to cross 2280, sell it for lower target 2220-2200.If moves above 2280, don't be short.