Upmove likely to continue

The market is likely to stay upbeat on the back of a strong domestic fundamentals and healthy FII buying support. Buoyancy in the Asian and US markets could also weigh positively on the sentiment. The Nifty should test 4020 on the upside while it has likely supports at 3980 and 3954 on the downside. The Sensex has a likely support at 13800 and could test higher levels at 13912.

US indices posted significant gains on Monday as investors' cheered the strong consumer confidence report. As a result, the Dow Jones scaled up by 90 points at 12284, the Nasdaq gained 35 points to close at 2448.

Barring Dr Reddy with the marginal lose at $17.11, rest of the Indian ADRs finished on a strong note. Tata Motors led the pack with gains of 4.71% followed by Rediff (up 3.43%), Infosys (up 2.70%) and Wipro (up 1.94%). Satyam, ICICI Bank, HDFC Bank, VSNL and Patni Computers gained around 0.50-1% each.

In the crude oil front, the Nymex light crude oil for January delivery declined by 99 cents to close at $62.44 per barrel, while the London Brent crude was up 62 cents at $59.46 a barrel. The commodity segment saw the Comex gold for February series flare up 30 cents to settle at $650.90 an ounce.