Market may remain cautious

The market is likely to remain under pressure following an overnight fall on the US market and weakness among major Asian indices in the ongoing trades and it may exhibit strong volatility during the intra-day trades. However, prevailing bullish sentiment may help the market to get some buying support in initial trades. Among the key local indices, the Nifty could decline to 4100 on the downside while on the upside there is a near term resistance at 4220. The Sensex has a likely support at 13810 and may face resistance at 14130.

US indices tumbled sharply on Wednesday, as the Dow Jones slumped by 237 points to close at 11147 and the Nasdaq ended 60 points lower at 2235.

Indian floats largely ended on a weak note. ICICI Bank dropped 3.52% while Dr Reddy, Satyam, VSNL, HDFC Bank and Patni Computer were down nearly 1-2% each. Tata Motors and Wipro gained 2-3% while Infosys and Rediff registered steady gains.

Crude oil prices in the US market edged higher, with the Nymex light crude oil for August '08 delivery gaining a cents to close at $136.05 a barrel. In the commodity space, the Comex gold for August series gained marginally by $5.30 to settle at $928.60 a troy ounce.