Market may exhibit caution

The market surged by over 300 points in the last two trading sessions and is expected to make further headways but the rally was not broad-based as heavyweights in the information technology, banking and auto spaces are still under performing. On Friday, the market breath was marginally positive though both the indices the Sensex and Nifty soared to all-time new highs. Further, rising crude oil prices, sliding fund inflows and mixed global cues may put pressure on local indices. Among the domestic indices, the Nifty has the support at 4140, while on the upside it could edge higher to 4200. The Sensex has a likely support at 14278 and may face resistance at 14463.

US indices ended on a mixed note on Friday, while the Dow Jones dropped by 20 points to close at 12653, the Nasdaq ended 8 points up at 2476.

Indian stocks trading on the US bourses logged steady to firm gains. VSNL rallied sharply and soared over 5% while Tata Motors, Infosys ,Patni Computers ,Satyam, Wipro and Rediff ended with steady gains. However, MTNL slipped 1.58% and HDFC Bank remained unchanged.

Crude oil prices gained strength, the Nymex light crude oil for March delivery rose $1.72 to close at $59.02. In the commodity space, the Comex gold for April series declined $11.50 to settle at $651.50 a troy ounce.