Firm global indices signal positive outlook

Major Asian indices like Nikkei, Hang Seng, Kospi, Straits Times and Jakarta Composite are trading with gains of more than 1% each. However, caution should be maintained on account of the prevalance of a intra-day volatility. Action could be seen in banking and cement stocks. Among the local indices, the Nifty could test higher levels around the 3680 level and has a support in the 3580-3450 range. The Sensex on the downside may slip to 12450 and may face resistance at 12650.

US indices rebounded on Wednesday on the view that fears of the sub-prime mortgage problem spreading were overblown. While the Dow Jones soared by 57 points at 12133, the Nasdaq advanced by 21 points at 2371.

The Indian ADR pack had a mixed outing on the US bourses. ICICI Bank led the upmove and gained over 2% while, HDFC Bank, MTNL, VSNL and Dr Reddy's Lab flared up over 1-2% each. Among the laggards Satyam, Wipro, Tata Motors, Infosys, Patni Computers and Rediff fell over 1% each.

Crude oil prices gained strength after slipping in the last few sessions. While the Nymex light crude oil for April series rose by 23 cents at $58.16 a barrel. In the commodity space, the Comex gold for April delivery slipped by $6.90 to settle at $642.50 an ounce.