Market may move in tune with global markets

US markets slumped after the Federal Reserve cut the interest rate to a quarter a points as investors felt that this rate cut is not enough for slowing economic growth. Tracking the same the Asian markets also slipped in morning trades and weakness in these global indices could make the investors jittery from taking any fresh position. Most of the leading Asian indices are down around 2% in current trades. Also fresh rally in global crude oil prices may weigh on the local indices in early trades and thereafter could exhibit volatility during intra-day trades. However, the prevailing north-bound journey and strong fund inflows in the past few sessions may add to the market advantage. Among the domestic indices, the Nifty could test 5740 and below this level may slip to 5594, while on the upside it could edge higher to 6200. The Sensex has a likely support at 19300 and may face resistance at 21000.

US indices slumped on Tuesday after the Federal Reserve cut the fed funds rate by a quarter-percentage point, as expected, but disappointed investors looking for a bigger cut. While the Dow Jones tumbled 294 points at 13,433, the Nasdaq ended 67 points lower at 2,652.

Except MTNL all the Indian ADRs ended weak on the US bourses. Satyam slumped over 7% while Wipro and VSNL slipped by over 5%. Infosys, Tata Motors, HDFC Bank, Patni Computers, ICICI Bank and Rediff ended in the red with losses around 1-4% each.

Crude oil prices in the international market edged higher, with the Nymex light crude oil for January delivery rising by $2.16 at $90.02 a barrel. In the commodity segment, the Comex gold for February series moved up by $3.60 to settle at $817.10 an ounce.