Market may exhibit strong volatility

After witnessing a strong correction last week, the market is likely to remain uncertain on the back of a strong intra-day volatile moves. However, mixed Asian indices in current trades and overnight gain in US indices may release some pressure from local indices in morning trades. Among the local indices, in the near term the Nifty could test 4350 on the upside while on the downside the index may get support at 4250. The Sensex is likely to get support at 14200 and may face resistance at 14500.

US indices rallied on Thursday, with the Dow Jones gaining 165 points to close at 11434 after falling for 3-4 straight sessions and the Nasdaq to end 30 points higher at 2258.

Among the eleven Indian ADRs only Dr Reddy ended in the green on the US bourses. Infosys & Wipro fell sharply and tumbled above 4-5% each. While Satyam, Tata Motors, ICICI Bank, HDFC Bank, MTNL, VSNL, Rediff and Patni computer declined over 1-2% each.

Crude oil tumbled more than $1.50 a barrel Thursday as the market dwells on global economy, stronger dollar. Hurricane Ike threatens oil on Texas Gulf Coast. While the Nymex light crude oil for October series falling by $1.71 at $100.87 per barrel. In the commodity space, the Comex gold for December delivery slumped $17 to settle at $745.50 a troy ounce.