Nervousness may continue

After witnessing a sharp slump of 279 points in yesterday's trades, the market is likely to remain shaky as global markets fell further and the FIIs remaining net sellers of equities in the local market. Although domestic mutual funds have been providing cushion by remaining net buyers, the sentiment is likely to remain bearish on weak global indices. Among the key domestic indices, the Nifty may get support at 4160 and a break below this level could see the index slip further to 4140. The Sensex has a likely support at 14100 and may test higher levels at 14400.

US indices slumped on Wednesday as the worries about inflation, the housing market and rising interest rates gave investors a reason to bail out after the recent rally. The Dow ended lower at 13466 down 130 points, while the tech-laden Nasdaq declined to close 24 points lower at 2587.

Indian floats had a weak outing on the US bourses. Except Rediff all fell sharply. HDFC Bank tumbled 4.75%, Tata Motors slipped 4.7% and Wipro, Patni Computer, Infosys, ICICI Bank, MTNL, Satyam dropped over 1-3% each.

Crude oil prices in the international market edged higher, with the Nymex light crude oil for July delivery rose by 35 cents to close at $65.96 per barrel. In the commodity space, the Comex gold for August series declined 50 cents to settle at $675.10 a troy ounce.