Market may slide further

The market is likely to remain under pressure following an sharp drop in the US market in yesterday's trades and weakness among major Asian indices in the ongoing trades. Persisting offloading of equities from FIIs in the domestic market may also add pressure. Among the key local indices, the Nifty has a key support at 2600 and a slip below this level could see it test lower levels around 2550, while on the upside the index could test 2670. The Sensex has a likely support at 8650 and may face resistance at 8890.
US market falls below 8000 for the first time since March 2003, as ongoing anxiety about the economy and uncertainty about the future of the auto industry weighed on the market. While the Dow index plunged 427 points at 7997 on Wednesday and the Nasdaq dropped 97 points to close at 1386.
All the ADRs ended with heavy losses on the US bourses. VSNL, ICICI Bank, HDFC Bank dropped over 10-14% each while Infosys, Satyam, Wipro, Dr Reddy, Tata Motors, MTNLm, Rediff and Patni Computers were down over 3-7% each.
Crude oil prices inched lower, with the Nymex light crude oil for December delivery slipping by 77 cents at $53.62 a barrel. In the commodity segment, the Comex gold for December series jumped $3.30 to settle at $736 an ounce.