Market may advance on Fed rate cut

A strong overnight gains in US markets after Fed rate cut and positive opening in most of the Asian indices in ongoing trades may help the local indices advance further. Uncertainty is likely to prevail on rising oil prices and higher intra-day volatility. Among the key indices, the Nifty has a resistance around 5975 levels and has a key support at 5860-5830 levels in the near-term. The Sensex has a likely support at 19000 and may face resistance at 20500.

US indices rallied on Wednesday after the Federal Reserve cut a key short-term interest rate by a quarter point. While the Dow Jones soared by 138 points at 13930, the Nasdaq advanced by 42 points at 2859.

However, the Indian ADR pack had a mixed outing on the US bourses. HDFC Bank led the upmove and zoomed nearly 6.55% while Satyam, Wipro, ICICI Bank and MTNL flared up over 1-4% each. But, Dr Reddy's, Tata Motors, VSNL, MTNL, Patni Computer and Rediff slipped over 1-7% each.

Crude oil rose to a record high in New York after U.S. inventories unexpectedly fell to a two-year low and the economy expanded at the fastest pace in more than a year. While the Nymex light crude oil for December series rose by $4.15 at $94.53 a barrel. In the commodity space, the Comex gold for December delivery surged by $8.20 to settle at $787.80 an ounce.