Caution should be maintained

Market may take a break from yesterday's flat close and rise to the tune with the firm Asian markets in current trades. Also further FIIs remaining net buyers for last couple of sessions in domestic market may boost the investors sentiment. However, weak global markets, rising crude oil prices and some amount of profit booking is expected on higher levels which could force the players to remain on the sidelines. Among the indices, the Nifty could test higher levels at 4245 and has a supports at 4200. The Sensex has a likely support at 14580 and may face resistance at 14720.

US indices ended weak on Thursday amid higher crude oil prices and worries about the impact of the slowdown in the housing market. While the Dow Jones moved down by 29 points at 12637, the Nasdaq slipped by two points at 2,489.

Barring ICICI Bank and Wipro, rest of the Indian floats had a weak close on the US bourses. Dr Reddy's and Tata Motors lost more than 1% each, while HDFC Bank ,Rediff , Patni Computers, Infosys, Satyam and VSNL lost around 1% each.

Crude oil prices edged higher. US light crude oil for March delivery moved up by $2 at $59.71 a barrel.