Market may open low on weak global cues

The Indian stock market may open lower today tracking the pale Asian and US markets. Action today is likely to be stock-specific. The Asian indices like Nikkei 225, Hang Seng index, Kospi index and Straits Times index are down nearly 2-4% each in the ongoing trades. With the concerns of recession in Japanese and US economy the investors in the domestic market would be closely watching the possible interest rate cut from Federal Reserve for further cues. Among the local indices, the Nifty could test 5600 on the upside and may slip to 4800 on the downside. The Sensex has a likely support at 16000 and may face resistance at 18700.

Concerns of recession spooked the US markets on Friday, with the Dow Jones registering its loss of 171 points at 12207, while the Nasdaq declining by 35 points to close at 2326.

Indian ADR's had a mixed outing on the US bourses. Dr Reddy's was the major loser and tanked 5.99% while VSNL, Wipro, Infosys and Satyam slumped over 1-2% each. However, Rediff jumped by 12.28% and ICICI Bank surged over 5% while HDFC Bank, Tata Motors and MTNL ended with the gains of over 2% each.

International crude oil prices moved up marginally, with the Nymex light crude oil for March delivery gaining by $1.30 to close at $90.71 per barrel. In the commodity space, the Comex gold for February series surged $4.90 to settle at $910.70 a troy ounce.