Rally may continue

The smooth expiry of the December futures and strong buying interest in heavyweights could further strengthen the market. However, caution should be maintained as intra-day volatility cannot be ruled out. The Nifty is likely to face resistance at 4050 on the upside and while the Nifty has a support at 3960 on the downside. The Sensex has a likely support at 13900 and resistance at 13980 levels.

Indian floats had a mixed run on the US bourses. MTNL lost 1.55% and ICICI Bank moved down 1.67% while, Infosys, Satyam, Wipro, Dr Reddy's, Tata Motors and HDFC Bank were down around 1% each. Among the gainers VSNL rose 2.4%, while Rediff and Patni Computers ended with postive note.