New Page 1 The market is likely to display positive trend on the back of strong Asian markets in morning trades and overnight gains in the US indices.
Overnight gains in the US markets and a sharp rise in several Asian indices in the ongoing trading session may help the domestic indices rebound from yesterday's losses. However, the market may exhibit caution owing to lack of clarity, higher volatility. Among the indices, the Nifty could test higher levels at 4507 and 4550, and has a supports at 4399. The Sensex has a likely support at 14864 and may face resistance at 15203.
US indices bounced back sharply bounced on Wednesday, after the Federal Reserve held interest rates near historic lows and signaled the economy has finally started to stabilize. While the Dow Jones flared up by 120 points at 9,362, the Nasdaq moved up by 29 points at 1,999.
All the Indian floats had a field day on the US bourses. Rediff jumped over 8% each, Patni Computers, Tata Motors, MTNL, ICICI Bank, Satyam and VSNL gained around 2-4% each. While Infosys, Wipro, Dr Reddy and HDFC bank gained marginally.
Crude oil prices edged higher, the US light crude oil for September delivery moved up by 71 cents at $70.16 a barrel. In the commodity segment, the Comex gold for December delivery advanced by $4.90 to settle at $952.50 an ounce.
Daily trend of FII/MF investment in equities
On August 11, 2009, FIIs were net buyers of stocks to the tune of Rs704 crore (purchases worth Rs2894 crore and sales of Rs2190 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs218 crore (purchases worth Rs652 crore and sales of Rs870 crore).
Stocks with +ve bias: DLF, Sterlite, Aban Offhore,Punj Loyyd
Stocks for investment: Apollo Tyres, Balrampur chini, Emco & Bajaj Holding
