Market may add gains

A recovery in most of the Asian indices in ongoing trades and prevailing strong bullish sentiment may help the local market advance further. However, bouts of strong intra-day volatile moves may weigh on the sentiment. Among the key indices, the Nifty has a resistance at 2800 and has a key support at 2730 in the near-term. The Sensex has a likely support at 8850 and may face resistance at 9150.

US indices gained further on Tuesday, rising for the third-straight session, as investors breathed a sigh of relief that some of the quarterly earnings were less terrible than had been expected. While the Dow Jones gained over 59 points at 8175, the Nasdaq moved up by 15 points at 1505.

The Indian ADRs also claosed with solid gains on the US bourses. ICICI Bank jumped 3.62% followed by Wipro adding 3.23% and Dr reddy gained 3.11%, while Patni Company, VSNL, Infosys, Tata Motors, HDFC Bank and Satyam were up over 0.50-2% each. However, MTNL slipped 1.03% and Rediff lost 0.52%.

Crude oil prices moved down, while the Nymex light crude oil for March delivery slipped by $4.15 to close at $41.58 a barrel. In the commodity segment, the Comex gold for April series moved down by $9.30 to settle at $901.40 an ounce.

Daily trend of FII/MF investment in equities
On Jan 28 2009, FIIs were net sellers of stocks to the tune of Rs344 crore (purchases worth Rs995 crore and sales of Rs1339 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs205 crore (purchases worth Rs467 crore and sales of Rs672 crore).