Action may continue

After gaining over 169 points in the last four trading session, the market may show more exuberance and advance further on the back of bullish sentiment amongst investors. Yesterday, the Sensex closed at 13187 amid buying in several heavyweight and sectoral stocks. Also the positive opening in the Asian indices like Nikkei, Kospi and Jakarta coupled with overnight gains in US & European indices may help the market to move in positive territory. On the technical side, the Nifty could test upper levels at 3820 and 3860 should find support in the 3780-3727 range, while the Sensex may face resistance at 13258 and test lower levels at 13020.

US indices registered decent gains on on Monday with the Dow Jones gaining 120 points at 12106 and the Nasdaq ending 35 points higher at 2366.

Baring MTNL all the Indian ADRs ended on a positive note on the US bourses. Patni was the leading from the front with gains of over 3%. Rediff, Infosys, HDFC Bank, ICICI Bank, and Dr Reddy's gained over 1% each while Satyam, Wipro and Tata Motors ended with marginal gains. However, VSNL ended with marginal losses.

Crude oil prices in the US market ended on positive note, with the Nymex Light Crude oil for December delivery gaining $0.88 to close at $60.02 a barrel and the London Brent crude adding $1.28 to close at $59.15 per barrel. However, in the commodity space, the Comex gold for December series declined $1.30 to settle at $627.90 an ounce.

On Nov 03 2006, FIIs were net buyers of stocks to the tune of Rs227.40 crore (purchases worth Rs1,683.10 crore and sales of Rs1,455.70 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs77.65 crore (purchases worth Rs525.32 crore and sales of Rs447.67 crore).