The ongoing sharp gains in Asian markets and overnight mixed closing in US indices may help the local market to pull back from lower levels.
The modest rally in the US markets and a rise in all Asian indices in the ongoing trading session may help the domestic indices pull back from lower levels. However, lack of clarity in the market and volatility may drag down the market. Among the indices, the Nifty could face a resistance at 4400-4450 levels and has a likely supports at 4325-4280 levels. The Sensex has a likely support at 14333 and may face resistance at 14600.
US indices bounced back moderately and finished higher, helped by some takeover activity. While the Dow Jones moved up by 33 points at 11,221, the Nasdaq lost 3 points at 2,256.
Indian ADRs had a mixed outing on the US bourses. Rediff was the major loser and tanked 2.43% while Wipro, MTNL, Patni Computer and VSNL slumped over 1% each. Infosys, Satyam and Dr Reddy ended with steady losses. However, ICICI Bank jumped by 3.49% and Tata Motors gained 1.41% while HDFC Bank ended with marginal gains.
Crude oil prices eased a little, with the Nymex light crude oil for October delivery falling by $1.66 to close at $106.23 a barrel. In the commodity space, the Comex gold for December delivery rose by 30 cents to settle at $803.50 an ounce.
Daily trend of FIIs / MF investment in equities
On September 04, 2008, FIIs were net sellers of stocks to the tune of Rs399.10 crore (purchases worth Rs2,617.20 crore and sales of Rs3,016.40 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs134.10 crore (purchases worth Rs651.30 crore and sales of Rs517.20 crore).
