Market may exhibit caution

The market is likely to witness cautious trend as major Asian gauges like the Nikkei, the Kospi index and the Jakarta index have declined in current trades and may drag down the indices in early trades. Although the domestic indices moved up in the last couple of sessions, intra-day volatility remains the major concern. Among the local indices, the Nifty may slip to 4222 and 4165 while on the upside it could test 4280 to 4363 level. The Sensex has a likely support at 14400 and could test higher levels at 14600.

US indices closed weak on Monday on worries of hedge funds hitting big losses. While the Dow Jones dropped eight points at 13352, the Nasdaq was down 11 points at 2577.

Indian floats, also, bucked the weak US market trend and ended lower. ICICI Bank and Satyam lost over 2% each, while Patni, Wipro, HDFC Bank, VSNL and Rediff lost around 1% each. Dr Reddy's, MTNL and Tata Motors, however, was the gainers amongst the ADRs and gained by 0.7%, 0.13% & 0.43% respectively.

Global crude oil prices inched up, with the Nymex light crude oil for August series rising by four cents to close at $69.18 per barrel.