Market may remain volatile

The market may witness cautious trend as US indices ended on a flat note yesterday and Asian indices are exhibiting upward 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 4900 on the downside while on the upper side it may move up to 5000. The Sensex has a likely support at 16457 and may face resistance at 16900.

US indices finished on a flate note on Tuesday. While the Dow Jones ended in negative at 12259 declined by 7 points, the Nasdaq down by 13 points at 2259.

Indian floats trading on the US bourses were traded mixed. Dr Reddy was the lead performer and soared 1.40% while VSNL rose over 0.81% and Tata Motors gained nearly 0.50% each. However, Infosys, Satyam, Patni Computers, ICICI Bank, MTNL and HDFC Bank ended with steady losses.

Crude oil prices inched higher in the US market, with the Nymex light crude oil for April 08 delivery adding 61 cents to close at $102.45 a barrel. In the commodity space, the Comex gold for April 08 series raised $9.20 to settle at $984.20.