Market may witness another correction

After falling over 500 points yesterday, the market is likely to fall further today on the back of weak global cues. Uncertainty is likely to prevail on lack of fund buying in the domestic market and the trend in the international markets. A fall in Asian indices in the ongoing trades may see the market resume on a weak note and could slip further during intra-day trades on sharp volatility. Among the local indices, the Nifty may slip to 2950 and 2900 while on the upside it could test 3050 to 3100 level. The Sensex has a likely support at 9970 and could test higher levels at 10250.

US indices tumbled sharply on Wednesday, as the Dow Jones slumped by 486 points to close at 9139 and the Nasdaq ended 98 points lower at 1682.

All the Indian ADRs except Rediff, which rose by 0.39%, fell in tune with the broader market. VSNL led the slump and tumbled 13.80% followed by ICICI Bank (down 11.92%), HDFC Bank (down 10.78%), MTNL (down 9.55%) and Tata Motors (down 8.24%) while Infosys, Patni Computers, Satyam, Wipro and Dr Reddy's slipped by over 4-7% each.

Crude oil prices in the international market slipped, with the Nymex light crude oil for December delivery slipped by $5.23 at $65.30 a barrel. In the commodity segment, the Comex gold for Gold series slipped $14.90 to settle at $742.40 an ounce.