Caution has to be maintained as expect a sharp intra-day volatility
The market may witness cautious trend as US indices ended on a negative 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 4320 and 4270 on the downside while on the upper side it may move up to 4420. The Sensex has a likely support at 14400 and may face resistance at 14700.
US indices finished on a negative note on Tuesday. While the Dow Jones ended in a negative at 11349 declined by 131 points, the Nasdaq down by 33 points at 2384.
Indian floats trading on the US bourses had a mixed outing. Among the major losers Satyam, MRNL, Infosys and Rediff fell over 2-3% each. While Tata Motors, Patni Computer, Dr Reddy's and VSNL closed with marginal loss. However, Wipro, ICICI Bank and HDFC Bank ended with steady gains.
Crude oil prices inched higher in the US market, with the Nymex light crude oil for September delivery adding $1.66 to close at $114.53 a barrel. In the commodity space, the Comex gold for December series gained $11.10 to settle at $816.80.
Daily trend of FII/MF investment in equities
On August 18, 2008, FIIs were net sellers of stocks to the tune of Rs396 crore (purchases worth Rs1834 crore and sales of Rs2230 crore).
