Firm global indices signal positive outlook

Following gains of around 400 points during the last five trading session the market bias may remain positive on strong fund buying into the local market and surging international indices. The market crossed the new all time high of 13506 in yesterday's trades and is likely to take further lead as buying interest continues in large-caps and several other sectoral counters. A strong overnight US markets and sharp rise in several Asian indices in current trades may augur well for the markets. Among the key local indices, the Nifty could test higher levels around 3885-3850 range and has supports at 3840 and 3821. The Sensex has a likely support at 13330 and may face resistance at 13500.

Major US indices registered significant gains on Wednesday, after reports from the Fed's recent policy-setting meeting stating that cutting inflation was the central bank's greatest concern. With the Dow Jones moving up to after reports another record close 12252, up 34 points which the Nasdaq moved up by 12 points to close at 2443. During the trading session, the Dow Jones hit a new intra day high at 12,291.73 while the Nasdaq climbed up to 2,45.56, its highest mark in almost six years.

Barring few, most of the Indian ADRs traded firm on the US bourses. MTNL led the pack with gains of nearly 5% while ICICI Bank and Rediff jumped over 2-3% each. Among the laggards Wipro and Tata Motors were down around 1% each.

Crude oil prices in the US market rose on Wednesday, with the Nymex Light Crude oil for December delivery rising 48 cents to close at $58.76 a barrel. However, in the commodity space, the Comex gold for December series dropped $1.50 to settle at $623.80 a troy ounce.

On Nov 14 2006, FIIs were net buyers of stocks to the tune of Rs1523.80 crore (purchases worth Rs3096.90 crore and sales of Rs1573.10 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs39.50 crore (purchases worth Rs474.31 crore and sales of Rs513.81 crore).