Market Outlook 08/08/08

Market may open gap down today

It was severe volatile day yesterday as nifty was swinging between 4500 support and 4600 resistance area's and for today all global cue are negative and over that India's annual inflation has come in at 12.01% for the week-ended July 26, slightly above the previous week's annual rise of 11.98%. It's the highest inflation in the last 13 years.
Light, sweet crude for September delivery rose $1.44 to settle at $120.02 a barrel on the New York Mercantile Exchange, halting a steep three-day slide on expectations a one million barrel per day pipeline that supplies Western countries was attacked by Kurdish separatists in Turkey could remain shut for up to two weeks.The Baku-Tbilisi-Ceyhan (BTC) oil pipeline, which pumps the more than 1 percent of world supply from fields in the Azeri sector of the Caspian Sea to the Turkish Mediterranean coast, was still ablaze after the Tuesday night explosion.The Dow fell 224.64, or 1.93 percent, to 11,431.43. It was the Dow's sixth triple-digit move in the past two weeks, illustrating how commonplace big swings in the indexes have become amid investors' uncertainty about the economy.For today, nifty below 4500 will go straight to 4460 and then 4432 is the support area.Above 4500, nifty willl face first resistance at 4530 and then 4580.

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