Further correction likely

The market may witness downfall, with concerns over foreign funds pulling out money from the domestic market and weak asian indices may resume market in red. While the Nifty could test 3975-3960 on the downside and 4020-4050 on the upside, the Sensex is likely to face a resistance at 13920 and has support at 13800 levels.

US indices ended weaker on Friday, with the Dow Jones declining 83 points to close at 12398, and Nasdaq ended 19 points lower at 2434.

Indian ADRs were hammered on the US bourses. Tata Motors led the fall with a slump of 3.43% followed by Satyam and Patni, which dropped 3% each. Other draggers Infosys, Wipro, Dr Reddy's, ICICI Bank, VSNL, Rediff and HDFC Bank plunged nearly 0-2% each. MTNL however, gains marginally.

Crude oil prices moved up, with the Nymex US light crude oil for February delivery rising by 72 cents to close at $56.31 a barrel. In the commodity segment, the Comex gold declines $19.30 to settle at $606.90 an ounce.