Trade with caution

The market is likely to remain volatile ahead of derivatives expiry for June series and weak global markets may put pressure on domestic indices in early trades. However, presence of strong bullish sentiment and FIIs remaining net buyers in equities for last couple of sessions may help the market to turn positive. The Nifty could test higher levels at 4350 and may dip around 4233, while the Sensex has a likely support at 14400 and may face resistance at 14600.

US indices ended weak for the second straight session on Tuesday, with the Nasdaq slipping by three points to close at 2574 amid selling in technology stocks. Other factors like subprime mortgage sector concerns saw the the broader Dow Jones end 14 points lower at 13338.

Indian ADRs ended in the green on the US bourses. Infosys, Satyam, Tata Motors, VSNL, Wipro, ICICI Bank, Patni Computers, MTNL and Rediff were up around 1% each. However, HDFC Bank slipped and ended in the red with marginal losses.

The Nymex light crude oil for August delivery shed $1.41 at $67.77 a barrel. In the commodity segment, the Comex gold for August series tumbled by $9.40 to settle at $645.30 an ounce.