Outlook remains positive

The modest rally in the US markets and a rise in several Asian indices in the ongoing trading session may help the domestic indices pull-back from lower levels. However, lack of clarity in the market and volatility may drag down the market. Among the indices, the Nifty could face a resistance at 5,500 level and has a likely supports at 5,040 level.

US indices bounced back moderately and finished higher on Friday, helped by the report stated that troubled bond insurer Ambac Financial could see a bailout as soon as next week. While the Dow Jones moved up by 97 points at 12,381, the Nasdaq managed to add four points at 2,303.

Barring MTNL, all the Indian floats slipped on the US bourses. ICICI Bank tumbled up by 4.60% and HDFC Bank slipped 2.63% , while Dr Reddy's, Tata Motors, Infosys, Patni Computer and Rediff were down by 0.5%-2% each.

Crude oil prices rose marginally, with the Nymex light crude oil for April delivery gaining by 58 cents to close at $98.81 a barrel. In the commodity space, the Comex gold for April delivery slipped by $1.40 to settle at $937.80 an ounce.