Trade with caution

The market is likely to remain volatile ahead of derivatives expiry for May series and weak global markets may put pressure on domestic indices in early trades. However, presence of strong bullish sentiment may help the market to turn positive. The Nifty could test higher levels at 4325 and may dip around 4225, while the Sensex has a likely support at 13950 and may face resistance at 14250.

US indices ended weak on Wednesday, a sharp rise in Treasury yields added to jitters over a looming bankruptcy for General Motors. The Nasdaq slipping by 19 points to close at 1748 amid selling in technology stocks and while the broader Dow Jones end 173 points lower at 8300.

Indian ADRs had a mixed outing on US bourses. VSNL, Rediff ,Patni Computer, Dr Reddy, HDFC Bank and Patni Computers dropped around 1-5% each. While, MTNL gained 10.97% while Infosys, Wipro, Tata Motors and ICICI Bank were up around 1% each.

The Nymex light crude oil for July delivery shed $1 at $63.45 a barrel. In the commodity segment, the Comex gold for August series gained by 10 cents to settle at $955.20 an ounce.