Caution has to be maintained as expect a sharp intra-day volatility.
The market may witness cautious trend as US indices ended on a negative note yesterday and Asian indices are exhibiting mix trends in the morning trades. Although the bias remains positive, investors should maintain caution as profit taking at higher levels may pull down the market. Among the local indices the Nifty could test 2650 and 2600 on the downside while on the upper side it may move up to 2700. The Sensex has a likely support at 8540 and may face resistance at 8750.
US indices finished on a negative note on Monday. While the Dow Jones ended in a negative at 6763 declined by 300 points, the Nasdaq down by 55 points at 1323.
Crude oil prices inched higher in the US market, with the Nymex light crude oil for April delivery moved down $4.61 to close at $40.15 a barrel. In the commodity space, the Comex gold for April series fell $2.50 to settle at $940.
Daily trend of FII investment in equities
On FEB 27 2007, FIIs were net sellers of stocks to the tune of Rs270 crore (purchases worth Rs1,841 crore and sales of Rs2,111 crore).
Stocks with +ve bias : Renuka, Mphasis, Tata Motors (SL 146), BPCL, BHEL
Stocks with ve bias : Sesagoa, Jet Airways, Suzlon, Rcom
Stocks for Investment : RIL, Bharti BEL, Lupin, HUL
