Caution has to be maintained as expect a sharp intra-day volatility.
The market may witness cautious trend as US indices ended on a flat note yesterday and Asian indices are exhibiting upward trends in the morning trades. Although the bias remains positive, investors should maintain caution as profit taking at higher levels may pull down the market. Among the local indices the Nifty could test 4470 and 4410 on the downside while on the upper side it may move up to 4540. The Sensex has a likely support at 14900 and may face resistance at 15200.
US indices finished on a flat note on Monday. While the Dow Jones ended in a positive at 11656 advanced by 40 points, the Nasdaq up by 29 points at 2378.
Most of Indian floats trading on the US bourses traded on positive note. VSNL & Wipro was the lead performer and soared above 3% while Infosys, Satyam and Rediff rose over 2% each. Dr Reddy, Patni Computer, Tata Motors, MTNL and ICICI Bank ended up each. However, only HDFC Bank ended with steady losses.
Crude oil prices inched lower in the US market, with the Nymex light crude oil for September delivery moved down 59 cents to close at $118.58 a barrel. In the commodity space, the Comex gold for December series fell $3.10 to settle at $883.
