Slide may continue

The south-bound trend in the market is likely to continue on the back of a weak global indices. However raise in FIIs may help the market sentiment. Among the key domestic indices, the Nifty may test 4240 on the downside while on the upside the index could test higher levels of 4310, while the Sensex could test higher levels of 14200 and has a likely support at 13900.

US indices faltered erasing earlier gains, as the Federal Reserve's dour economic outlook curbed optimism about the health of U.S. banks. While the Dow Jones dropped 53 points to close at 8422, the Nasdaq ended 7 points lower at 1728.

Barring few select floats, most of the Indian ADRs posted loss on the US bourses. Infosys, Satyam, Wipro, Tata Motors, ICICI Bank, HDFC Bank and VSNL lost nearly 0.57-3% each, Among the select gainers Rediff gained the most and moved up over 9% while MTNL and Patni Computers ended with decent gains.

Crude oil prices inched lower, with the Nymex light crude oil for July delivery moved up by $1.94 at $62.04 a barrel and in the commodity segment, the Comex gold for June 09 series gained $10.70 to settle at $937.40 an ounce.

Daily trend of FII/MF investment in equities
On May 19 2009, FIIs were net buyers of stocks to the tune of Rs5045 crore (purchases worth Rs12579 crore and sales of Rs7534 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs619 crore (purchases worth Rs7975 crore and sales of Rs8594 crore).