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Friday, January 05, 2007

Market may remain edgy


After correcting nearly 140 points in yesterday's trades, the market may witness further downward movement on the back of a further weakness in most of the heavyweight counters and ongoing weak Asian Indices. However, overnight gains in the US market may keep the market in good stead. Among the benchmark domestic indices, the Nifty is likely to test stiff resistance 4015, while on the downside it has a support at 3980-3960. The Sensex has a likely support at 13850 and could test higher levels of 13920.

US indices notched up significant gains on Thursday amid steep fall in the crude oil prices and a report that showed strong retail sales. While the Dow Jones advanced 6 points at 12481, the Nasdaq gained 30 points to close at 2453.

Indian floats largely had a mixed outing on the US bourses. VSNL & MTNL were the major loser and lost over 2% each while Infosys, Wipro, Tata Motors, ICICI Bank and HDFC Bank ended with a negative note. Among the gainers Dr Reddy gained 2.21% at Rs18.5 while Satyam, Rediff and Patni ended with steady gain.

The Nymex light crude oil for february delivery slumped by $2.73 to close at $55.59 a barrel, while the in the commodity segment, the Comex gold for January 07 delivery lost $3.20 to settle at $623.90 an ounce.