Sharp fall in global indices indicate negative open

Weakness across the global markets and rising global crude oil prices may drag down the local indices. Nervousness in the market is likely to continue following a slump in the overnight US market, escalating global crude oil prices and weak Asian indices in the morning trades. All the leading Asian indices like the Nikkie, the Hang Seng, the Straits Times, the Kopsi index and the Jakarta index are down over 2% each. Although the domestic indices moved up sharply in the last couple of sessions, intra-day volatility remains the major concern. Among the local indices, the Nifty may slip to 4375 while on the upside it could test the 4490 level. The Sensex has a likely support at 14600 and could test higher levels at 15000.

On the results front RNRL, Ceat, ABB, UBI, Alstom Project, Ambujha Cement, Andhra Bank, Educomp, Grasim Industries, I-Flex, Hind Motors, MRPL, RPower, Tata Power, Oreintal Bank, Nagarjna Fertlizers, SRF, Jindal Steel and mnay more are scheduled to announce their numbers.

US indices tumbled on Thursday, as the Dow Jones slumped 283 points to close at 11349 while the Nasdaq ended 46 points lower at 2280.

All the Indian ADRs fell in tune with the broader market. ICICI Bank led the slump and tumbled 10.59% followed by HDFC Bank down by 8.27%, Tata Motors, VSNL, Infosys, Rediff, Satyam and Wipro slipped over 5-6% each. Dr Reddy's Lab and Patni Computer dropped over 2% each. However, MTNL gained 2.51%.

The Nymex light crude oil for September delivery gained by $1.05 and closed at $125.49 per barrel. In the commodity space, the Comex gold for August series tumbled 10 cent to settle at $922.70 an ounce.