Bias may remain bullish

The positive Asian indices in morning trades and prevailing bullish trend likely to generate optimism in morning trades. The market may see some short-term profit bookings in frontline stocks which may create a volatility in the afternoon. Among the domestic indices, the Nifty could test higher levels of 3720 and may dip to 3650 on the downside. The Sensex has a likely support at 12000 and may face resistance at 12300.

Blue chips gained and the Nasdaq declined in a mixed Tuesday session on Wall Street as investors showed caution after the recent rally and amid ongoing worries about banks and autos. As a Result the Dow gained 50 points to close at 8469, the Nasdaq also ended weak with loss of 15 points at 1716.

Indian ADRs had a mixed outing on Friday. Wipro was the major gainer amongst the ADRs and gained 6.05%, while Infosys, Satyam, Dr Reddy, ICICI Bank, VSNL and Tata Motors were up around 1-3% each. Among the losers Rediff shed 5.06% and HDFC Bank, MTNL and Patni Computers fell around 1% each.

Crude oil prices moved up, while the Nymex light crude oil for June series went up by 84 cents at $59.69 a barrel. In the commodity segment, the Comex gold shot up by $10.40 to settle at $923.90 an ounce.