The sentiment is likely to remain weak following slump in the Asian and US indices.
The market is likely to remain under pressure following an overnight fall on the US market and weakness among major Asian indices in the ongoing trades. Intra-day volatility may also weigh on the sentiment. Among the key local indices, the Nifty has a key support at 4200 and a slip below this level could see it test lower levels around 4150, while on the upside the index could test 4260. The Sensex has a likely support at 13850 and may face resistance at 14150.
US indices suffered on Monday on spiking oil and unease about bank bailout plan. While the Dow Jones dropped 373 points to close at 11016, the Nasdaq ended 95 points lower at 2179.
All the Indian ADRs fell in tune with the broader market except Dr Reddy. Wipro led the slump and tumbled 11.19% followed by Patni Computer (down 8.25%), ICICI Bank (down 7.82%), Rediff (down 7.02%), Tata Motors (down 6.22%), HDFC Bank (down 4.37%) and Infosys (down 4.05%) while Satyam, VSNL and MTNL slipped by over 1-3% each.
Crude oil prices posted the biggest one-day dollar gain ever Monday as the dollar was punished by the government's $700 billion Wall Street bailout plan and big investors scrambled to fill obligations as the October contract expired. With the Nymex light crude oil for October delivery moved up by $25 and touched the days high at $130 but it dropped back down to settle at $120.92 a barrel, up $16.37. In the commodity space, the Comex gold for December series also gained $44.30 to settle at $909 a troy ounce.
Daily trend of FIIs / MF investment in equities
On September 19, 2008, FIIs were net buyers of stocks to the tune of Rs1168 crore (purchases worth Rs6,826 crore and sales of Rs5,658 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs167 crore.
