Relief rally to continue

The recovery of the Sensex coupled with increase in FII fund inflows and a positive opening in the Asian market may way on the local indices in early trades and thereafter could exhibit some volatility during the intra-day trades. However, mood of the market remains cautious. Among the local indices Nifty could rise to 3810 or 3850 level on the upside while it has a crucial support at 3730 on the downside. The Sensex has resistance at 13220 and support at 13030.

US indices registered gains, while the Dow Jones closed above the level at 12317, up two points, while the Nasdaq moved up by one points to close at 2432.

Most of the Indian ADRs ended positive out of 11 floats trading on the US bourses. ICICI Bank advanced 3.62% and Infosys, Satyam, HDFC Bank, Dr Reddy's, MTNL and Tata Motors gained over 0.5-3% each. Among the major loser Rediff declined 4.46% and VSNL shed 2.1% while ,Patni Computers was marginally down.

In the commodity segment, the Comex gold for the February advanced at $632.40 an ounce. The Nymex light crude oil for January delivery declined to close at $61.37 a barrel.