Intra-day volatility may exist

The market may witness cautious trend as US indices ended on a flat note yesterday and Asian indices are exhibiting mix trends in morning trades. Although the bias remains positive, investors should maintain caution as profit-taking at higher levels may pull down the market. Among the local indices the Nifty could test 4740 on the downside while on the upper side it may move up to 5050. The Sensex has a likely support at 16000 and may face resistance at 16400.

US indices finished on a flate note on Tuesday. While the Dow Jones ended in negative at 12533 declined by 16 points, the Nasdaq up by 14 points at 2341.

Indian floats trading on the US bourses were largely on the positve side except Patni Computers. Out of 11 stocks, ICICI Bank was the lead performer and soared 5.75% while MTNL & Infosys rose over 3% each. HDFC Bank, Dr Reddy, Satyam, Wipro, Tata Motors and Rediff gained nearly over 1% each. However, Patni Computers ended with marginal losses.

Crude oil prices inched higher in the US market, with the Nymex light crude oil for May delivery adding 36 cents to close at $101.22 a barrel. In the commodity space, the Comex gold for April series gained $16.30 to settle at $935.