Market may exhibit strong volatility

After witnessing a strong correction yesterday, the market is likely to remain uncertain on the back of a strong intra-day volatile moves. However, firm Asian indices in current trades may release some pressure from local indices in morning trades. Among the local indices, in the near term the Nifty could test 3030 on the upside while on the downside the index may get support at 2930. The Sensex is likely to get support at 9400 and may face resistance at 9700.

US indices declined sharply on Monday, as worries about the auto and bank industries sent investors running after the recent rally.
The Dow Jones lost 254 points to close at 7522 and the Nasdaq to end 43 points lower at 1502.

All the Indian ADR's fell on the US bourses. ICICI Bank was the biggest loser and dropped over 13.27% followed Tata Motors declined 9.90%, while HDFC Bank, Rediff, Satyam, Wipro. Dr Reddy, MTNL, Patni Computers and VSNL were down around 2-8% each. However, Infosys closed in negative territory with marginal loss.

Crude oil prices lost sharply, with the Nymex light crude oil declined $3.97 at $48.41 per barrel. In the metals segment, the Comex gold for June series lost $7.60 to settle at $917.70 an ounce.