Overnight sharp gains in US markets and firm opening in most of the Asian indices in ongoing trades may help the local market to pull-back from lower levels.
The 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 4100-4150 levels and has a likely supports at 3995-3955 levels. The Sensex has a likely support at 13170 and could test higher levels at 13500.
US indices bounced back sharply and finished higher, helped several big bank stocks staged a significant late-afternoon rally Thursday along with the broader market after reports surfaced about a potential long-term government solution to the credit crunch. While the Dow Jones moved up by 410 points at 11,020, the Nasdaq managed to add 100 points at 2,199.
All the Indian floats had a field day on the US bourses. Tata Motors, ICICI Bank & HDFC Bank flared up over 11% each followed by MTNL jumped 9.74%, VSNL up by 9.63% & Wipro gained 7.52%, while Dr Reddy's, Rediff, Patni Computer, Infosys and Satyam gained around 1% each.
Crude oil prices eased a little, with the Nymex light crude oil for September delivery falling by 72 cents to close at $97.88 a barrel. In the commodity space, the Comex gold for August delivery gained by $46.50 to settle at $897 an ounce.
