New Page 1 The market is likely to witness cautious trend as the slump in overnight US indices and the ongoing Asian indices could weigh on the sentiment.
The market is likely to remain under pressure following an overnight fall on the US market and weakness among major Asian indices in the ongoing trades and it may exhibit strong volatility during the intra-day trades. However, prevailing bullish sentiment may help the market to get some buying support in initial trades. Among the key local indices, the Nifty could decline to 4450 on the downside while on the upside there is a near term resistance at 4530. The Sensex has a likely support at 14725 and may face resistance at 15000.
US indices tumbled Monday, as weaker oil prices and more geopolitical unrest raised worries that the recession may not be waning as soon as some had hoped. While the Dow Jones tumbled by 187 points to close at 8612, the Nasdaq dropped 42 points at 1816.
Major Indian ADRs, too, buckled under selling pressure on the US bourses. Rediff slipped 8.36%, Tata Motors declined 6.94% and Satyam dropped 6.27% while Infosys, Wipro, HDFC Bank, ICICI Bank and MTNL slipped 2-4% each. However, Dr Reddy and Patni Computers closed with the gains.
Crude oil prices declined marginally, with the Nymex light crude oil for July series sliding by $1.42 to close at $70.62 a barrel. In the commodity space, the Comex gold for August series declined $13.20 to settle at $927.50 a troy ounce.
SGX Nifty : 4411 ( Down 109 ) 9.00 a.m
Stocks with +ve bais : SBI , Axis bank
Stock with -ve bias : Sterlite
Stock for investment : Balrampur chini, Bajaj Holding, BEL, Godrej Consumer, Man Ind
