Market may fall further

The market may extend its weak trend after the Sensex reported losses of over 300 points in the previous session. The sharp fall in Asian markets in current trades, FIIs remaining the net sellers in equities and weak US Indices may also weigh on the investors sentiment. Among the indices, the Nifty could test 2740 and 2700 on lower side and has a resistance at 2810 and 2850. The Sensex has a likely support at 8950 and may face resistance at 9250.

US indices tumbled on Monday, dragged down by concerns about Citigroup's potential deal with Morgan Stanley - and the start of the fourth-quarter earnings reporting period. While the Dow Jones fell by 125 points at 8,474, the Nasdaq slipped by 33 points at 1,539.

All the Indian ADRs except Dr Reddy & MTNL fell in tune with the broader market. Satyam led the slump and tumbled 84.39% followed by Wipro (down 10.37%), Tata Motors (down 7.56%), ICICI Bank (down 7.31%) and HDFC Bank (down 5.04%) while VSNL, Rediff, Infosys and Patni Computers slipped by over 1-4% each.

Crude oil prices slipped on Monday, US light crude oil for September delivery moved down by $3.24 at $37.59 a barrel. In the commodity space, the Comex gold for December delivery tumbled by $34 to settle at $821 an ounce.

Daily trend of FII/MF investment in equities

On Jan 09, 2009, FIIs were net sellers of stocks to the tune of Rs178 crore (purchases worth Rs2,815 crore and sales of Rs2,993 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs350 crore (purchases worth Rs540 crore and sales of Rs890 crore).