Market may witness pull-back

Overnight gains in the US markets and rise in several Asian indices in the ongoing trading session may help the domestic indices rebound from lower levels. However, lack of clarity in the market and higher volatility may make the market edgy. Among the indices, the Nifty in the short term could test 3840 on the upside and has a support in the 3737-3720 range. The Sensex has a likely support at 12950 and may face resistance at 13158.

In the US markets, the broader Dow Jones scaled up by 20 points at 12177 following the resignation of U.S. Secretary of Defense Donald Rumsfeld, as the Democrats regained control of the U.S. House, fueling hopes for a change in Iraq policy & less government spending, while the tech-heavy Nasdaq added nine points to close at 2385.

Indian ADRs were mostly up on the US bourses. VSNL led the gainers pack and surged above 2%. ICICI Bank, Satyam, Wipro and Patni Computers jumped over 1% each while HDFC Bank registered steady gains. However, Dr Reddy's, Tata Motors lost ground and were down by 1% each while MTNL eased marginally.

Crude oil prices moved slightly up, with the Nymex Light Crude oil for December delivery adding $0.90 to close at $59.83 a barrel, while the London Brent crude falling by $1.27 to close at $58.48 per barrel. In the Commodity space, the Comex gold for December series declined $9.40 to settle at $618.30 an ounce.

On Nov 7 2006, FIIs were net buyers of stocks to the tune of Rs335.50 crore (purchases worth Rs2,099.70 crore and sales of Rs1,764.20 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs14.98 crore (purchases worth Rs521.41 crore and sales of Rs536.39 crore).