Negative bias may continue

The market tumbled over 400 points in the last trading session and is expected to fall further on mixed global cues. The mix close in the US markets and flat opening in most of the Asian markets coupled with the presence of sharp intra-day volatility could drag down the local indices. The Nifty could test higher levels at 4100 and may find supports at 4060 or 4000, while the Sensex has a likely support at 14,100 and may face resistance at 14,500.

US indices witnessed choppy trading during intra-day trades and ended on a subdued note on Tuesday as investors welcomed a meeting among Federal Reserve Chairman Bernanke, Senator Dodd and Treasury Secretary Paulson on the problems in the financial markets. While the Dow Jones was down 30 points at 13091, the Nasdaq rose 13 points at 2521.

Indian floats closed largely with loses on the US bourses. Rediff was the only gainer and rose over 2% while Infosys, Satyam, Dr Reddy's, Tata Motors ICICI Bank, HDFC Bank, VSNL and MTNL lost over 1-4% each.

Crude oil prices slipped marginally. While the Nymex light crude oil for September delivery moved down by $1.65 at $69.47 a barrel. In the commodity space, the Comex gold for December series slipped by 30 cents to settle at $666.20 a troy ounce.