Market Outlook 10-08-2009

Nifty opened on a weak note and broke the important support level of 4550, then came down to 4460 and finally closed 104 points down from previous day's close. Only Oil marketing companies have shown some strength. Otherwise, Most of the sectors have faced selling pressure at higher levels. Many scrips have already broken their Daily trendline on downside with good volume. So we may witness some more downside. On downside, major daily trendline support for Nifty exists at 4325. So in these senario, sell some long position on rallies and add more if Nifty manages to close above 4760.

For FRIDAY, support exists at 4460 and then at 4420.. On upside, resistance exists at 4530 and 4560. The Nifty slipped once again for the second day running and lost more than 100 points to close below 4,500, down 3.5% for the week. These two days have left sentiment and the market a bit rattled because just a few days back we were all talking about how 4,700 has been taken out on the way up and today we are talking about whether that was a false breakout and whether the market has started a process of correction, which is leading it further down. Till now Nifty is not giving any signs of breakdown, next support for the Nifty is seen at 4350 close below 4350 will be initial sign of correction. Traders are advised to Buy near its support level rather then going short on Nifty at these levels. Support for the Nifty is seen at 4350. Resistance is seen at 4750