Utmost caution has to be maintained due to the existence of a sharp intra-day volatility.
Intra-day volatility may see the market swing both ways and hold back the local players from taking fresh positions. The market may open positive following overnight gain in the US markets and mixed Asian indices in morning trades. As the overall sentiment remains bearish, the market may not slip from positive to negative. The Nifty may witness resistance at 3950 on the upside while the near-term support at 3900 is seen on the downside. The Sensex has a likely support at 12600 and could witness resistance at 13000.
US indices finished on a positive side on Tuesday. While the Dow Jones ended in positive at 10851 advanced by 485 points, the Nasdaq up by 99 points at 2082.
Among the Indian ADRs on the US bourses. Except Rediff rest of all were performing in positive territory, from which VANL was leading by 19.24%, followed by Infosys advanced 13.49%, HDFC Bank gain 11.57%, Satyam moved up by 9.79% and Wipro gains 9.46% at Rs9.72. While, ICICI Bank, Patni Computer, MTNL, Tata Motors and Dr Reddy closed with the gain of about 3-5% each.
In the commodity segment, the Comex gold for the December declined $13.60 to settle at $880.80 an ounce. The Nymex light crude oil for October delivery gained $4.27 to close at $100.64 a barrel.
