Volatility remains key factor

The market is likely to exhibit weak trends on the back of a strong intra-day volatile moves. The sentiment is likely to remain sluggish on weak Asian cues. Also the FIIs remaining net sellers of equities in the domestic market may see the investors remain jittery. Among the local indices, the Nifty could test higher levels at 5600 and has a support at 4800. The Sensex on the downside may slip to16000 and may face resistance at 18700.

US indices gained on Tuesday as investors welcomed a strong read on durable-goods orders and some upbeat earnings, ahead of the Federal Reserve policy meeting. While the Dow Jones gained 96 points at 12480, the Nasdaq moved up by eight points to close at 2358 on weakness in tech stocks.

The Indian ADRs had a mixed outing on the US bourses. VSNL tumbled over 5% and wipro, Dr Reddy's, ICICI Bank and MTNL fell 1-2% each. While, Infosys, Satyam, HDFC Bank and Patni computers and Rediff gained around 1-5% each.

Crude oil prices moved up marginally, with the Nymex light crude oil for March delivery moved up by 65 cents at $91.64 a barrel. In the commodity segment, the Comex gold for April series was down by $2 to settle at $930.80 a troy ounce.