Market Outlook for the Week:
On weekly chart NIFTY continues to trade very close to its July, 2006 lows. Once again RBI’s rate cut to infuse liquidity into the system combined with sharp fall in CRUDE prices failed to improve market’s sentiments. In fact inflation too came lower at 11.44% for the week compared to 11.80% announced in previous week. Current scenario by and large remains in favour of BEARS.
On daily closing basis resistance around levels of 3600 and then at 3800 will be crucial in case of an up move while any move below levels of 3000 may trigger fresh sell off that may take indices lower towards level of 2800. Reiterating our earlier view, fresh long position could be created only if NIFTY closes above levels of 3800.
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