Firm global indices signal positive outlook

Following gains of 176 points yesterday, the Sensex remaining just short of hitting its record high and is expected to make further headways on firm Asian indices in morning trades and Dow hitting its all-time high. Further, fall in the global crude oil prices may also keep the sentiment positive. However, caution should be maintained on account of the prevalence of a intra-day volatility.

Among the local indices, the Nifty could test 4210 on the upside and may slip to 4120 on the downside. The Sensex has a likely support at 14220 and may face resistance at 14350. Major US indices registered significant gains on Thursday, on account of lower oil prices and the relief about economic outlook. While the Dow Jones flared up by 52 points at 12674, the Nasdaq moved up by 4 points to close at 2468.

Except Wipro, most of the Indian ADRs traded firm on the US bourses. VSNL led the pack with gains of nearly 4% while Infosys, Satyam, HDFC Bank, MTNL, Patni Computers, Dr Reddy's, Tata Motors and Rediff jumped over 1-3% each. While, Wipro was down around 1%.

Crude oil prices eased, the Nymex light crude oil for March delivery falling by 84 cents to close at $57.30. In the commodity space, the Comex gold for April series moved up by $5.10 to settle at $663 a troy ounce.