Market may remain positive

After slipping over 180 points yesterday the market is expected to remain volatile on the back of unwinding of positions in derivative contracts. However, the market may open on a positive note tracking firm Asian markets in current trades which are up on speculation that Federal Reserve may cut the rate further. The market may also see some short-term profit bookings in frontline stocks creating a volatility in the afternoon trades. Among the local indices, the Nifty could test 5900 on the upside and may slip to 5394 on the downside. The Sensex has a likely support at 18800 and may face resistance at 19500.

Major US indices surged on Wednesday, after comments from a Federal Reserve official sparked the hopes that the central bank will cut rates again at its next policy meeting. The Dow Jones industrial average gained by as much as 331 points, the Nasdaq moved up by 82 points to close at 2663.

The Indian ADRs also witnessed a rally on the US bourses. Satyam zoomed 8.37% followed by Wipro gaining 6.26%, while Infosys, Tata Motors, Rediff, VSNL, MTNL and Patni Computer surged around 1-5% each.

Crude oil prices slipped on Wednesday, with the Nymex light crude oil for January delivery losing $3.80 to close at $90.62 a barrel. In the commodity space, the Comex gold for February delivery tumbled $14 to settle at $821.20 an ounce.