Market may remain nervous

The market is likely to remain uncertain owing to lack of clarity and may witness sideways movement on the back of a sharp intra-day volatility. After witnessing solid gains of over 1200 points in last seven sessions, the market is likely to remain positive as the FIIs continued to remain net buyers of equities in the local market. However, mixed global cues may see the investors remain jittery. Among the key local indices, the Nifty could decline to 4975 on the downside while on the upside there is a near term resistance at 5013. The Sensex has a likely support at 16800 and may face resistance at 17300.

US indices posted modest gains on Thursday, expecting that Federal Reserve may curt the interest rates further on declining new home sales and a weak reading on GDP growth. The Dow Jones gaining 35 points to close at 13912 and the Nasdaq closed 11 points higher at 2710.

Select Indian ADRs clocked decent gains. While Satyam Computers and Wiopro gained over 3-4% each while, Infosys, Tata Motors, ICICI Bank, HDFC Bank, MTNL, Rediff and VSNL gained over 0.50% - 2% each. Among the laggards Dr Reddy's Lab and Patni Computer declined over 0.50% - 1% each.

Crude oil price jumped over the $80 a barrel, with the Nymex light crude oil for November series gaining by $2.58 at $82.88 per barrel. In the commodity space, the Comex gold for December delivery moved up by $4.40 to settle at $735.50 a troy ounce.