Firm global indices indicate positive outlook

The market bias may remain positive on strong fund buying into the local market and surging international indices. However, caution should be maintained on account of the prevalence of an intra-day volatility. Among the local indices, the Nifty could test 4030 on the upside and may slip to 3940 on the downside. The Sensex has a likely support at 13230 and may face resistance at 13475.

US indices ended positive on Wednesday. The Dow Jones gained sharply by 152 points to close at 11384 while the Nasdaq ended 51 points higher at 2294.

Among the Indian ADRs trading on the US bourses, HDFC Bank & ICICI Bank were the major gainer by over 4%, followed by Dr Reddy up by 3.63%, Patni Computer 2.89% and VSNL 1.47%, while Infosys was up by 0.73%. However, Rediff led the laggard and lost 5.65%, Satyam, Tata Motors & Wipro slipped into the red.

Crude Oil prices extended a post-July 4th descent Tuesday - falling more than $9 a barrel over two days - as Iran's president downplayed concerns about possible war in the Middle East and investors anticipated falling demand due to high gasoline prices. The Nymex light crude oil for August delivery moving down by $5.33 to close at $136.04 a barrel. In the Commodity segment, the Comex gold for August series lost $5.50 to settle at $923.30 a troy ounce.