Firm global indices may lift sentiment

Overall buoyancy in the international markets coupled with rising FII inflows in the current month and strong fundamentals may help the market edge higher. All the Asian indices are marginally up in morning trades which may help the domestic indices commence on a firm note. On the market technicals, the Nifty could test higher levels around 3857 while on the downside it has a support at 3830-3810 range. The Sensex has a likely support at 13330 and may face resistance at 13500.

US indices rallied sharply for the second consecutive session on Tuesday with the Dow Jones adding 86 points to close at 12218, this been the 15th record close since the beginning of October, while the Nasdaq advanced by 24 points to close at 2431.

Barring few all the Indian ADRs had a firm outing on the US bourses. Rediff was the major gainer and rose over 5% followed by Wipro which up by 4%, Infosys, Patni Computer and HDFC Bank gained over 2% each. However amongst the losers VSNL shed over 2% followed by ICICI Bank which was down by 1%. Tata Motors and Dr Reddys ended with marginally losses.

Crude oil prices in the US market slipped on Tuesday, with the Nymex Light Crude oil for December delivery falling by 30 cents to close at $58.28 a barrel and the London Brent crude declining by 66 cents at $59.05 per barrel. In the commodity space, the Comex gold for December series lost 50 cents to settle at $625.30 a troy ounce.

On Nov 13 2006, FIIs were net buyers of stocks to the tune of Rs778.20 crore (purchases worth Rs1927.70 crore and sales of Rs1149.50 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs52.10 crore (purchases worth Rs549.28 crore and sales of Rs497.27 crore).