Indices may open positive

The market is likely to display positive trend as fund inflows continues into the domestic equities and players are maintaining their bets on large caps, banking and energy counters. However, the market is likely to witness cautious trend as the major Asian indices are trading flat in the ongoing trades and intra-day volatility remains the major factor. Among the local indices, the Nifty could test the 3100-3150 range on the upside while on the down side it could find support at 3000 and 2950. The Sensex is likely to get support at 9850 and may face resistance at 10100.

Major US indices registered significant gains on Tuesday after the Federal Reserve cut a key short-term interest rate to the lowest level on record, and signaled it had more tools available to help the economy as the recession stretches on.While the Dow finished with the gains of 360 points at 8924 and the Nasdaq moved up by 82 points to close at 1590.

Except Satyam which fall sharply with loss of over 54% all the Indian ADRs traded firm on the US bourses. ICICI Bank, VSNL & HDFC Bank led the pack with gains of 11% each while Dr Reddy, Rediff, Wipro, Tata Motors and Inosys jumped over 1-4% each.

Crude oil prices declined, with the Nymex light crude oil for January delivery losing by 91 cents to close at $43.60 a barrel. In the commodity space, the Comex gold for February delivery gained $6.20 to settle at $842.70 an ounce.