Market may witness pull-back

Overnight gains in the US markets and a sharp rise in several Asian indices in the ongoing trading session may help the domestic indices rebound from yesterday's losses. However, the market may exhibit caution owing to lack of clarity, higher volatility and the Sensex breaking the psychological level of 14000 towards the close yesterday. Among the indices, the Nifty could test higher levels at 4140 and 4170, and has a supports at 4075. The Sensex has a likely support at 13900 and may face resistance at 14100.

US indices bounced back sharply after the strong readings on retail sales and the Fed's "Beige Book" report on the economy, and some relief on the interest-rate front. While the Dow Jones flared up by 187 points at 13,482, the Nasdaq moved up by 33 points at 2,582.

Barring Patni Computers and ICICI Bank, rest of the Indian floats had a field day on the US bourses. Dr Reddy's Lab jumped 4.13%, while Tata Motors,HDFC Bank, Wipro, Infosys, Satyam, VSNL, MTNL and Rediff gained around 1-2% each.

Crude oil prices edged higher, the US light crude oil for July delivery moved up by 91 cents at $66.26 a barrel. In the commodity segment, the Comex gold for August delivery slipped by 40 cents to settle at $653.10 an ounce.