The market may slip initially as major Asian indices are trading weak in morning trades.
The market may exhibit cautious trend after taking a strong dip on Thursday. Also major Asian gauges like the Hang Seng index, the Kospi index, Straits Times and the Jakarta index have declined in current trades and may drag down the indices in early trades. Among the local indices, the Nifty has an intra-day support at 3900 and on a break below 3900 the next support is at 3850. On the upside there is a resistance at 4000. The Sensex has a likely support at 12900 and may face resistance at 13150.
US indices declined on Thursday, as frozen credit markets and weak economic reports amplified jitters ahead of the House vote on the $700 billion bank rescue plan. The Dowjones lost 348 points to close at 10483 while the Nasdaq ended 93 points lower at 1977.
However, Indian ADRs were largely weak on the US bourses. Infosys dropped over 5% while MTNL, Rediff, Satyam, Wipro, VSNL, Dr Reddy's, Tata Motors, ICICI Bank, Patni Computer and HDFC Bank were down around 1-4% each. ICICI Bank and VSNL, however, ended with modest gains.
Crude oil prices in the global market moved down, with the Nymex light crude oil for November series sliding by $4.56 at $93.97 a barrel. In the commodity segment, the Comex gold for December delivery lost $43 to settle at $844.30 an ounce.
Daily trend of FIIs / MF investment in equities
On September 30, 2008, FIIs were net buyers of stocks to the tune of Rs84 crore (purchases worth Rs4,203 crore and sales of Rs4,119 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs49 crore.
