Market may remain cautious

The market is likely to remain cautious and witness sideways movement during intra-days. The US market closing flat and major Asian indices like Nikkei and Hang Seng falling around 1% each in morning trades may trigger early selling in the domestic market. However, figures showing strong FII buying might lift the investors sentiment and may lead to buying. On the technical side, the Nifty may get support at 4950 and could test higher levels of 5050, while the Sensex may face resistance at 16900 and has a support at 16600 on the downside.

US indices finished on a flate note on Monday. While the Dow Jones ended in negative at 12825 declined by 24 points, the Nasdaq up by 5 points at 2408.

Indian ADRs witnessed mixed trend. Patni led the downfall with a slump of 4.56% followed by Satyam down by 3.54% while VSNL and Infosys dropped around 1% each. Wipro and Tata Motors were down 0.50% each However, MTNL gained 6.06%, ICICI Bank soared 4.58%, HDFC Bank up with 2.10% and Dr Reddy advanced 0.91% while Rediff reported steady gain.

Crude oil prices in the US market edged higher, with the Nymex light crude oil for May delivery gaining 79 cents to close at $117.48 a barrel and in the commodity space, the Comex gold for June series flared up $2.40 to settle at $917.60 a troy ounce.