Market may remain volatile

The market may witness cautious trend as US indices ended on a flat note on Friday and Asian indices are exhibiting upward trends in morning trades. Although the market may resume positive, investors should maintain caution as profit-taking at higher levels may pull down the market. Among the local indices the Nifty could test 3200 on the downside while on the upper side it may move up to 3330. The Sensex has a likely support at 10400 and may face resistance at 10600.

US indices finished on a flate note on Friday. While the Dow Jones ended in negative at 8451 declined by 128 points, the Nasdaq up by 4 points at 1650.

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Indian floats too followed the suit and ended weak on US bourses. ICICI Bank tumbled 20.17% while HDFC Bank, Wipro, Infosys and Rediff fell 4-6% each. Dr Reddy's, VSNL and MTNL lost marginally. Tata Motors, however, gained 1.72% and Satyam added 1.39%.

Crude oil prices in the international market slipped, with the Nymex light crude oil for October delivery slipped by $8.89 at $77.70 a barrel. In the commodity segment, the Comex gold for December series lost $27.50 to settle at $859 an ounce.