Upturn may continue

After yesterday's pullback the market bias remains positive. The overnight gains in US markets and the major Asian indices like NIkkei, Hang Sang, Kospi, Straits Times and Jakarta Composite are trading with gains at nearly 1-2% each. The investors should remain cautious as intra-day volatility can not be ruled out. Among the domestic indices, the Nifty could test higher levels of 3160 and may dip to 3060 on the downside. The Sensex has a likely support at 10200 and may face resistance at 10500.

US indices jumped on Tuesday in a broad-based rally as investors looked beyond the Federal Reserve's dour outlook on the economy and instead scooped up shares hit in last year's big sell off. While the Dow Jones was up by 62 points at 9015, the Nasdaq ended 24 points up at 1652.

Except few all the Indian floats ended with gains on the US bourses. Rediff rose over 9% while Tata Motors, Satyam, ICICI Bank and Dr Reddy gained over 4-6% each and Infosys, HDFC Bank and Wipro gained over 1-2% each. However, Patni Computers, VSNL and MTNL lost marginally.

Crude oil prices slipped marginally with the Nymex light crude oil for February delivery slipped by 23 cents at $48.58 a barrel. In the commodity space, the Comex gold for Gold series moved up by $8.20 to settle at $866 a troy.