The south-bound trend in the market is likely to continue on the back of a weak global indices.
The market is likely to remain under pressure following an drop in the US market in yesterday's trades and weakness among major Asian indices in the ongoing trades. Persisting offloading of equities from FIIs in the domestic market may also add pressure. Among the key local indices, the Nifty has a key support at 4100 and a slip below this level could see it test lower levels around 4050, while on the upside the index could test 4150. The Sensex has a likely support at 13400 and may face resistance at 13700.
US Market slumped on Tuesday as the heated debate in Congress on the proposed $700 billion bank bailout dampened hopes that the government would take faster action to mitigate the credit market crisis. While the Dow index plunged 162 points at 10854 the Nasdaq dropped 26 points to close at 2153.
Indian floats largely had a mixed outing on the US bourses. Satyam was the major loser and declined by above 6% followed by Infosys and Wipro, which lost 4.76% and 2.76% respectively. While Tata Motors ended with steady losses. Among the gainers, HDFC Bank & MTNL jumped over 5% each while Dr Reddy, Patni Computer, VSNL and ICICI Banks ended with steady gains.
Crude oil prices inched lower, with the Nymex light crude oil for November delivery slipping by $2.76 at $96.37 a barrel. In the commodity segment, the Comex gold for December series lost $17.80 to settle at $891.20 an ounce.
Daily trend of FII/MF investment in equities
On September 22, 2008, FIIs were net buyers of stocks to the tune of Rs111 crore (purchases worth Rs3,245 crore and sales of Rs3,134 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs332 crore (purchases worth Rs477 crore and sales of Rs809 crore).
