Action may continue

On Oct 27 2006, FIIs were net buyers of stocks to the tune of Rs496.70 crore (purchases worth Rs2,661.50 crore and sales of Rs2,164.70 crore).

The market may show more exuberance and advance further on the back of bullish sentiment amongst investors. Yesterday, the Sensex closed above 13000 mark for the first time amid buying in several heavyweight and sectoral stocks. On the eve of the key credit policy announcement today, the market may appear little cautious during intra-day trades and would hope for the interest rates to remain unchanged. In morning trades, upmove in several Asian indices like Nikkei, Kospi and Jakarta may help the domestic indices commence in positive territory. On the technical side, the Nifty could test upper levels at 3835 and 3880 and should find support in the 3745-3727 range, while the Sensex may face resistance at 13085 and test lower levels at 12800.

On the earnings front, BPCL, Dabur India, HLL, Tata Tea and VSNL etc are some of the major results to be announced today.

US indices on Monday displayed mixed trend. While buying action in technology stocks and fall in crude oil prices helped the Nasdaq gain 13 points at 2364, disappointing news from Wal-Mart and Verizon dragged the Dow Jones to 12086, down four points.

Indian ADRs largely ended on a mixed note on the US bourses. Infosys, Satyam, Wipro, ICICI Bank, HDFC Bank and VSNL gained over 1% each while Tata Motors tumbled over 4% and Patni Computers shed 3.79%. Dr Reddy's, MTNL and Rediff ended with marginal losses.

Crude oil prices in the US market took a major hit, with the Nymex light crude oil for December delivery dropping by $2.39 to close at $58.36 a barrel. However, the London Brent crude was up by 31 cents at $61.08 per barrel. In the commodity space, the Comex gold for December series advanced $6.20 to settle at $607.20 an ounce.