Eyes on credit policy

The market may rally further on expectations that the Reserve Bank of India won't surprise investors in today's credit policy meeting. Despite registering smart gains in yesterday's trades, the mixed Asian markets in current trades and rising oil prices could make the investors jittery from taking any fresh position. Among the local indices, the Nifty could test 6000 on the upside and has a strong support around 5700 level. The Sensex has a likely support at 19000 and may face resistance at 20500. On the earnings front Balaji Tele, Ceat, Crompton Greaves, DLF, Dolphin Offshore, Indotech Transformers, ONGC, Sesa Goa, SAIL, Tata Chemical, Tata Elxsi, Tata power, TTML and Unitech are expected to announce their quarterly numbers.

Major US indices registered significant gains on Monday, on expectations that the Federal Reserve will cut interest rates later this week despite record oil prices above $93 a barrel and another decline for the dollar versus the euro. While the Dow Jones flared up by 64 points at 13870, the Nasdaq moved up by 13 points to close at 2817.

Except Satyam all the Indian ADRs traded firm on the US bourses. ICICI Bank led the pack with gains of over 6.5% while Infosys, Tata Motors and HDFC Bank, MTNL, Wipro, VSNL, Patni Computer and Dr Reddy's added over 1-5% each.

Crude oil prices advanced further, with the Nymex light crude oil for December delivery gaining by $1.67 to close at $93.53 a barrel. In the commodity space, the Comex gold for December delivery gained $5.10 to settle at $792.60 an ounce.