Market may remain nervous

Nervousness in the market is likely to continue after the Sensex reported losses of around 200 points in the last session. Weakness in the global indices and major funds resorting to selling of equities in the last session could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 5800 - 5750 on the downside while on the upside there is a near term resistance at 6000. The Sensex has a likely support at 19000 and may face resistance at 20500.

US indices ended flat on Tuesday on the back of weaker economic news and lower oil prices ahead of an expected interest rate cut from the Federal Reserve today. While the Dow Jones slipped by 78 points to close at 13792, the Nasdaq was down marginally at 2817.

Major Indian ADRs, too, buckled under selling pressure on the US bourses. VSNL led the slump and tumbled 5.72% while Tata Motors declined 4.08%. Patni Computers, VSNL, MTNL, Infosys, Satyam, ICICI Bank, Dr Reddy's, HDFC Bank and Wipro lost over 1-3% each.

Crude oil prices declined sharply, with the Nymex light crude oil for December series sliding by $3.15 to close at $90.38 a barrel. In the commodity space, the Comex gold slumped $4.80 to settle at $787.80 a troy ounce.