Market may remain volatile

After registering the gains of 150 points on Monday, the market is likely to exhibit weak trends on the back of a strong intra-day volatile moves. The meltdown US markets and weak Asian indices in morning trades also likely to put pressure on the domestic indices. On the upside, the Nifty could test around the 3020 level and may witness support around the 2950 level. The Sensex has a likely support at 9700 and may test higher levels of 10000.

US indices fell marginally on Monday, amid worries about the automakers, questions about the Bernard Madoff scandal and anticipation of Tuesday's rate-cut decision from the Federal Reserve, with the Dow Jones sliding over 65 points to close at 8565 while the Nasdaq slipping by 32 points at 1508.

Indian floats largely had a mixed outing on the US bourses. VSNL was the major loser and declined by above 5% followed by Wipro which lost 3.14% respectively. Dr Reddy, ICICI Bank, HDFC Bank, Rediff, Infosys and Satyam ended with steady losses. Among the gainers Tata Motors, MTNL and Patni Computers ended with steady gains.

Crude oil prices in the global market moved down on Monday. The Nymex light crude oil for January series gained by $1.77 at $44.51 per barrel. In the commodity segment, the Comex gold for February delivery moved up by $16 to settle at $836.50 an ounce.