Outlook for Friday

"Markets are volatile this week too, though global markets had stability, with the intervention of central banks to pump in liquidity to calm down the markets which were affected by subprime lending defaults by leading financial institutions, we are caught in a domestic political crisis of instability of central government on the Indo-US nuke deal.

Left parties stand on the issue of support to the government, in view of the hard postions taken by both PM and Mr.Karat on Indo-US nuke deal pursuation, came yesterday after market hours at 4p.m. from Mr.Karat himself: In his own words, he expressed that their stand on the pausing further progress / pursuation by government until the issues raised by them on Hyde Act, are clarified to the best satisfaction of all concerned, in National Interest, they are not going to destabilize the government, immediately. They await the response from UPA chairperson Ms.Sonia Gandhi, and toning down by PM that there exists an amicable solution to the issue, should calm the worry of investors throwing the nation into an unwanted mid term poll immediately, which of course no political party including left wish it at the moment.

Our markets underperformed asian peers during the last weeks, on these domestic concerns, domestic funds are appearing to be picking of stocks at lower levels and offering support at 200DSMA, which is giving a bounce, and 100DSMA is becoming supply zone from the worried, cautious investors and FIIs. Today our markets will have a relief rally, and the inflation data to be released at 12 noon may not be given much credence since, all eyes are on pricing the political risk from now on. Today markets will be volatile and finally close positive ending the 4 weeks of negative closing. Buying blue chip stocks in and around 200DSMA and exiting the same arond 100DSMA could be the best strategy for intra day/ week traders during this month.

The day's range for Nifty shall be 4000(Support) and 4255 (Resistance); Sensex shall be 13780 (Support) and 14780 (Resistance)