Market may correct further

After crashing over 450 points in yesterday's trades the weakness in the market may continue. A slide in Asian indices and fall in the FII inflows in the domestic market may also see the market fall further. The sharp rise in Crude oil prices that may keep investors away from taking fresh positions. Among the local indices, the Nifty may slip to 4250 while on the upside it could test the 4350 level. The Sensex has a likely support at 14050 and could test higher levels at 14400.

US indices closed flat on Thursday on second-biggest one day gain in oil prices. While the Dow Jones gained by 13 points at 11430, the Nasdaq lost 9 points to close at 2380.

Indian floats trading on the US bourses had a mixed outing. Among the major losers ICICI Bank, Rediff, Wipro, HDFC Bank, VSNL Tata Motors and Satyam fell over 1-4% each. While Infosys and Patni Computers ended with marginal loss. MTNL and Dr Reddy gained over 1-2% each.

Crude oil prices moved up on a falling dollar and rising concerns about global supply, with the Nymex light crude oil for September series rising by $5.62 at $121.18 a barrel. In the commodity space, the Comex gold for December delivery flared up by $22.70 to settle at $839 a troy ounce.