Trading with caution

The market is likely to remain volatile ahead of derivatives expiry for Frebruary series and weak global markets may put pressure on domestic indices in early trades. However, presence of strong bullish sentiment may help the market to turn positive. The Nifty could test higher levels at 2790 and may dip around 2733, while the Sensex has a likely support at 8750 and may face resistance at 9050.

US indices ended weak on Wednesday as investors took a mixed response to new details on Treasury's plan to help stabilize the banking system. The DowJones end 80 points lower at 7271 and the Nasdaq slipping by 16 points to close at 1425 amid selling in technology stocks.

Most of the Indian ADRs barring few ended in the red on the US bourses. HDFC Bank tumbled nearly 5.21% and Rediff slipped 4.19% while Satyam, ICICI Bank, Wipro, Dr Reddy's Lab and Infosys lost over 0.65-3% each. However, Tata Motors gained 7.76% followed by MTNL advanced 6.80%, VSNL and Patni Computer gained over1% each.

The Nymex light crude oil for April delivery gained $2.54 at $42.50 a barrel. In the commodity segment, the Comex gold for April series tumbled by $3.30 to settle at $966.20 an ounce.