Market may remain nervous

The south-bound trend in the market is likely to continue on the back of a weak global indices. Most of the Asian indices have paired their early gains and currently trading in the red which may further dampen the investors' sentiment. On the positive front crude oil prices are down for last few sessions. Among the key domestic indices, the Nifty may test 4300 on the downside while on the upside the index could test higher levels of 4370. The Sensex has a likely support at 14300 and may face resistance at 14550.

US indices declined sharply on Monday on credit market problems and higher oil prices. Investors discount better-than-expected existing home sales report. While the Dow Jones slipped almost 242 at 11386, the Nasdaq lost 49 points to close at 2366.

Indian ADRs trading on the US bourses, too, succumbed to heavy losses. Among the major losers VSNL, Infosys, Patni Comp and Wipro shed over 3-5% each. Dr Reddy's, Tata Motors, ICICI bank, Satyam, Rediff and HDFC Bank were down around 0.80-2% each. However, MTNL ended with steady gain.

Crude oil prices declined marginally, with the Nymex light crude oil for September delivery slipping by 34 cents to close at $115.11 a barrel. In the commodity space, the Comex gold for December series lost $7.70 to settle at $825.70 a troy ounce.