The market is likely to witness cautious trend as major Asian gauges like the Nikkei, the Hang Seng index have declined sharply in current trades and may drag down the indices in early trades.
The market may extend its weak trend after the Sensex reported losses of over 300 points in the previous session. The sharp fall in Asian markets in current trades and weak US indices may also weigh on the investors sentiment. Among the indices, the Nifty could test 4525 and 4465 on lower side and has a resistance at 4575 and 4600. The Sensex has a likely support at 15100 and may face resistance at 15325.
US indices closed on a negative note on Tuesday. The Dow Jones lost 140 points at 11642 whereas the Nasdaq was down 9 points at 2431.
All the Indian ADRs closed in the red on US bourses. ICICI Bank and HDFC Bank tumbled 5-8% each, while Satyam. Dr Reddy's, Tata Motors, Wipro, VSNL, Rediff and MTNL lost over 0.50-4% each.
Crude oil prices slipped on Tuesday, US light crude oil for September delivery moved down by $1.44 at $113.01 a barrel. In the commodity space, the Comex gold for December delivery tumbled by $13.70 to settle at $814.60 an ounce.
Daily trend of FII/MF investment in equities
On August 11, 2008, FIIs were net buyers of stocks to the tune of Rs409 crore (purchases worth Rs2958 crore and sales of Rs2549 crore). while domestic mutual funds were net buyers of stocks to the tune of Rs455 crore.
