Gains may continue

The overnight gains in international markets and positive opening in most of the Asian indices in ongoing trades may help the local market advance further. Among the key indices, the Nifty can see an up- move till 4410 levels and has a key support at 4250 levels in the near-term. The Sensex has a likely support at 14100 and may face resistance at 14450.

Major US indices finished positive on monday, after positive news about the U.S. housing market, including an upbeat profit forecast from Lowes, as well as an upgrade of Bank of America, encouraged investors to step back into the market after last week's selloff. While the Dow Jones gained by 235 points at 8504, the Nasdaq moved up by 52 points to close at 1732.

All the Indian ADRs posted sharp gains on the US bourses. Rediff led the pack with the gains of 36.55%, while Satyam, HDFC Bank, Tata Motors, ICICI Bank, MTNL and VSNL gained around 18-25% each. However, Infosys, Wipro and Patni Computers gains around 7-9% each.

Crude oil prices moved down marginally, with the Nymex light crude oil for June delivery lost 4 cents to close at $58.99 a barrel. In the commodity space, the Comex gold for June delivery lost $9.60 to settle at $921.70 an ounce.