Market may witness pull-back

Overnight gains in the US markets and a sharp rise in several Asian indices in the ongoing trading session may help the domestic indices rebound from yesterday's losses. However, the market may exhibit caution owing to lack of clarity, higher volatility and the Sensex breaking the psychological level of 12600 towards the close yesterday. Among the indices, the Nifty could test higher levels at 3875 and 3920, and has a supports at 3750. The Sensex has a likely support at 12350 and may face resistance at 12675.

US indices bounced back sharply after yesterdays flat close with Dow Jones flared up by 277 points at 11,239, the Nasdaq moved up by 69 points at 2,285.

Barring Dr Reddy rest of the Indian floats had a field day on the US bourses. Rediff jumped 8.74%, ICICI Bank gained 8.56% and MTNL moved up 7.60%, while Satyam, HDFC Bank, VSNL, Infosys, Wipro, Tata Motors, and Patni Computer gained around 0.18-6% each.

Crude oil prices sheds sharply, the US light crude oil for August delivery moved down by $4.14 at $134.60 a barrel. In the commodity segment, the Comex gold for August delivery slipped by $16 to settle at $962.70 an ounce.