Market Out Look 7- JUL - 2009

Market to open flattish with a negative bias for the day. The budget seems to be a populist budget and there was not much policy related to the reforms.

As there was much expectation from this budget for the capital market as it did not happen , the market reacted negatively to the budget.

I think policy reform will be addressed from time to time when required for the economy, there is nothing to panic in the market, but further correction is expected from the current level a break below 4090 can drag the nifty to 3850 levels in the coming days.

Nifty to trade in the range 4090 – 4182 levels, either side break to give a new direction to the market for the day and can test 3900 – 3850 levels.

Nifty will be more attractive at 3900 for the long- term investments.

INFRA, FMGC and POWER to benefit from this budget.

Nifty technically have support at 4125/4090/4020 and resistance at 4200/4220/4275 for the day.

Have a nice trading day.