Market may remain volatile

The market is likely to witness volatility as US market ended on positive side and major Asian gauges like the Nikkei and the Hang Seng index are moving in negative territory in current trades and expected to rise in early trades. The unwinding of positions in derivative segment ahead of expiry of November series may also keep the domestic indices volatile. However, FIIs remained net buyers in equities for last couple of sessions may help the sentiment to turn positive. Among the indices, the Nifty could test higher levels around the 5900, while on the downside it has a key support at 5394. The Sensex has a likely support at 18800 and may face resistance at 19500.

US indices rose on Tuesday, as investors welcomed the Citigroup's fresh infusion of cash and Barclays' outlook. While the Dow Jones gained 215 points at 112958, the Nasdaq was added 40 points at 2581.

Indian floats also ended higher. VSNL rose 8.36% while HDFC Bank, MTNL, ICICI Bank, Rediff, Patni Computer and Tata Motors gained over 2-6% each. Dr Reddy's, however, was the only loser amongst the ADRs and declined by 0.71%.

Global crude oil prices slipped marginally, with the Nymex light crude oil for January series fell by $3.28 to close at $94.42 per barrel. In the commodity space, the Comex gold for December delivery tumbled $12.50 to settle at $814 an ounce.