Market may remain volatile

The market may witness cautious trend as US indices ended on a positive note yesterday and Asian indices are exhibiting upward trends in morning trades. Although the bias remains positive, investors should maintain caution as profit-taking at higher levels may pull down the market. Among the local indices the Nifty could test 2670 on the downside while on the upper side it may move up to 2770. The Sensex has a likely support at 8950 and may face resistance at 9200.

US indices finished on a positive note on Thursday. While the Dow Jones ended in positive at 8212 advanced by 12 points, the Nasdaq up by 22 points at 1512.

All the Indian ADRs except Infosys and Tata Motors, which rose by 2.72% and 4.40% respectively, fell in tune with the broader market. Satyam led the slump and tumbled 20.33% followed by Rediff (down 5.50%), VSNL, ICICI Bank, Patni Computer, HDFC Bank, Dr Reddy, MTNL and Wipro. All these ADRs slipped by over 1-5% each.

Crude oil prices inched higher in the US market, with the Nymex light crude oil for February 09 delivery adding 11 cents to close at $35.51 a barrel. In the commodity space, the Comex gold for March 09 series lost $1.50 to settle at $807.30.