The market is likely to open positive on overnight gains in the US indices and strong Asian markets in morning trades.
Positive close in US markets and firm Asian indices in morning trades may help the market open in the green. However, worries about FIIs remaining net sellers of equities in the domestic market and recent spike in crude oil prices could force the players to remain on the sidelines. The Nifty on the downside may dip to 4150 while on the upside it may test 4260. The Sensex has a likely support at 13600 and may face resistance at 14100.
US indices bounced back in a late session rally on Tuesday with the Dow Jones advanced by 266 points at 11398, the Nasdaq added 55 points to close at 2320.
Most of the Indian ADRs posted gains on the US bourses on Tueday. VSNL led the pack with the gains of 6.09%, while Satyam surged 6.09%. Tata Motors, Infosys. Wipro, ICICI Bank, Rediff, HDFC Bank and Patni Computer gained over 1-5% each. However, MTNL fell over 2.74% and Dr Reddy lost 2.06%.
Oil prices fell below $121 on Tuesday aafter OPEC president says there is adequate supply and prices are much too high. The Nymex light crude oil for September delivery slipped by $2.54 to close at $122.19 a barrel. In the commodity space, the Comex gold for December delivery tumbled $11.40 to settle at $926.40 an ounce.
Daily trend of FII/MF investment in equities
On July 26, 2008, FIIs were net sellers of stocks to the tune of Rs609.30 crore (purchases worth Rs1,696.80 crore and sales of Rs2,306.10 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs203.70 crore (purchases worth Rs851.60 crore and sales of Rs647.90 crore).
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http://mutual-fund-investor.blogspot.com/2008/07/reliance-sip-insure-reliance-mutual.html
I'm surely going in for this!!