The south-bound trend in the market is likely to continue on the back of a weak global indices.
The market is likely to remain under pressure following an sharp drop in the US market in yesterday's trades and weakness among major Asian indices in the ongoing trades. Persisting offloading of equities from FIIs in the domestic market may also add pressure. Among the key local indices, the Nifty has a key support at 4350 and a slip below this level could see it test lower levels around 4300, while on the upside the index could test 4475. The Sensex has a likely support at 14450 and may face resistance at 14800.
Major US indices finished with marginal loss on Monday with the Dow Jones lost by 42 points at 11284, the Nasdaq declined by 25 points to close at 2286.
Most of the ADRs ended with heavy losses on the US bourses. Wipro, VSNL and ICICI Bank dropped over 3-5% each while Tata Motors, Rediff, Infosys, Satyam and Dr Reddy's were down over 1-2% each. However, MTNL, HDFC Bank and Patni Computer closed with marginal gains.
Crude oil prices inched lower, with the Nymex light crude oil for September delivery slipping by $3.69 at $121.41 a barrel. In the commodity segment, the Comex gold for December series lost $9.60 to settle at $907.90 an ounce.
Daily trend of FII/MF investment in equities
On August 31, 2008, FIIs were net sellers of stocks to the tune of Rs342 crore (purchases worth Rs2,890 crore and sales of Rs3,232 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs47 crore.
