Market likely to remain volatile

Subdued Asian indices and sharp intra-day volatility may hold the investors from taking any fresh position. However, overnight gains in the US markets coupled with a bullish sentiment in the present trades could see the market advance further. Among the local indices, the Nifty could test higher levels at 5000 and on the downside it has support at 4850. The Sensex has a likely support at 16650 and may face resistance at 17000.

In the US markets, the broader Dow Jones moved marginally up by 20 points at 13779 after profit warnings from a pair of retailers and a big drop in consumer confidences revived worries about the economic outlook., while the tech-heavy Nasdaq gained by 16 points to close at 2683.

Among the Indian ADRs trading on the US bourses, 6 out of 11 floats ended on a positive turf. Rediff led the upmove and rose 5.88% while Infosys, Satyam, Tata Motors, HDFC Bank and Wipro gained over 0.5% - 1%% each, while Dr Rrddy's Lab, ICICI Bank, MTNL, VSNL and Patni Computers slipped over 0.5% - 2%.

Crude oil prices in the international market slipped below $80, with the Nymex light crude oil for November series slipping by $1.42 to close at $79.53 a barrel. In the commodity segment, the Comex gold for December delivery slipped by 50 cents to settle at $739.30 a troy ounce.