Market may remain cautious

The market is likely to remain cautious and witness sideways movement during intra-day trades. The flat closing of the US markets and weak start in the major Asian indices in the morning trades may trigger early selling in the domestic market. However, figures showing strong FII buying on Monday might lift the investor sentiment and lead to buying. On the technical side, the Nifty may get support at 5158 and test higher levels of 5230 whereas the Sensex may face resistance at 17650 and find support at 17345 level on the downside.

US indices finished on a negative note on Monday. The Dow Jones ended a tad lower at 12970, down 89 points, whereas the Nasdaq ended at 2464, down 13 points.

All the Indian ADRs ended at lower levels. VSNL led the pack with a loss of over 5% while Patni Computers declined 4.51%. Among the other losers, MTNL, Rediff, ICICI Bank, Tata Motors, Wipro and Infosys lost around 1% each. Satyam, Dr Reddy's Labs and HDFC Bank ended with marginal losses.

Crude oil prices in the US market edged higher, with the Nymex light crude oil for June delivery gaining $3.14 to close at $119.97 a barrel. In the commodity space, the Comex gold for June series flared up $16.10 to settle at $874.10 a troy ounce.