Market may remain volatile

The market may witness cautious trend as US indices ended on a flat note yesterday and Asian indices are exhibiting mixed trends in the morning trades. Although the bias remains negative, investors should maintain caution as profit taking at higher levels may pull down the market. Among the local indices the Nifty could test 2750 and 2700 on the downside while on the upper side it may move up to 2800. The Sensex has a likely support at 8900 and may face resistance at 9200.

US indices finished on a flat note on Wednesday, hovering near three-month lows, as investors considered the Federal Reserve's dour economic forecast and President Obama's home rescue plan. While the Dow Jones ended in a positive at 7556 advanced by 3 points, the Nasdaq down by 3 points at 1468.

Most of the Indian ADR's fell on the US bourses. Tata Motors & Rediff were the biggest loser and dropped over 10% followed MTNL & VSNL declined 3%, while ICICI Bank, HDFC Bank and Wipro were down around 1-2% each. However, Patni Computer soared over 3.13% while Satyam, Dr Reddy and Infosys gained around 0.24-2% each.

Crude oil prices inched lower in the US market, with the Nymex light crude oil for March delivery down by 31 cents to close at $34.62 a barrel. In the commodity space, the Comex gold for April series raised $10.70 to settle at $978.20.