Market may remain cautious

The market is likely to remain under pressure following an overnight fall on the US market and weakness among major Asian indices in the ongoing trades and it may exhibit strong volatility during the intra-day trades. However, prevailing bullish sentiment may help the market to get some buying support in initial trades. Among the key local indices, the Nifty could decline to 3440 on the downside while on the upside there is a near term resistance at 3500. The Sensex has a likely support at 11200 and may face resistance at 11500.

US indices tumbled Monday, as fears about the impact of swine flu and jitters about the next batch of quarterly results gave investors a reason to retreat after a big rally. While the Dow Jones tumbled by 51 points to close at 8025, the Nasdaq dropped 15 points at 1679.

Major Indian ADRs, too, buckled under selling pressure on the US bourses. Rediff slipped 4.91%, Patni Computers declined 2.53% and Tata Motors dropped 2.50% while Infosys, Satyam, HDFC Bank and VSNL slipeed marginally. However, Dr Reddy, ICICI Bank, MTNL and Wipro closed with the marginal gains.

Crude oil prices declined marginally, with the Nymex light crude oil for June series sliding by 63 cents to close at $49.51 a barrel. In the commodity space, the Comex gold for June series declined $5.90 to settle at $908.20 a troy ounce.