New Page 1 Market is likely to open cautious on the back of mixed Asian cues and may witness bounce in later part of the day.
The fall in the US markets coupled with subdued Asian markets in morning trades and marginal FII inflows may weigh on local indices in early trades and thereafter could exhibit volatility during the intra-day trades. However, the pullbacks in the past few sessions may add to the market advantage and help the sentiment turn positive. Key local indices, the Nifty could test higher levels around 4300-4350 range in the short term and has a key support at 4200. The Sensex is likely to test 13750 on the downside while it may face resistance at 14050.
US indices finished weak on Friday with the Dow Jones declined 15 points at 8277, the Nasdaq dropped 3 points to close at 1692 on weakness in tech stocks.
All the Indian ADRs gained on the US bourses. Rediff and Satyam gained over 12% each. Among the other major gainers ICICI Bank, HDFC Bank, Patni Computer, VSNL, Dr Reddy, Wipro and Infosys gained around 1-5% each.
Crude oil prices moved up, with the Nymex light crude oil for July delivery gained by 62 cents at $61.67 a barrel. In the commodity segment, the Comex gold for June series added $7.70 to settle at $958.90 a troy ounce.
Daily trend of FII/MF investment in equities
On May 21 2009, FIIs were net buyers of stocks to the tune of Rs147 crore (purchases worth Rs3896 crore and sales of Rs3749 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs97 crore (purchases worth Rs1263 crore and sales of Rs1166 crore).
Stocks with positive bias :- RIL (SL 2120), RNRL, HDIL, Dr Reddy.
Stocks for investments:- Godrej Consumers, Man Inds,L&T, HDFC ltd
