Market may exhibit strong volatility

The presence of a sharp intra-day volatile trend due to lack of clarity may see the market remain edgy and move on the either side of the zone. Mixed fund inflows into the domestic equities and the global market trend will be closely monitored for further direction. Among the key local indices, the Nifty has good support around 4400 and upside till 4470-4500 levels. The Sensex has a likely support at 14750 and may face resistance at 15050.

US indices remained closed on Friday on account of Independence Day.

Indian floats trading on the US bourses were traded weak. Among the laggards Rediff lost 6.01% while Infosys & Patni Computers move down over 3% each. Tata Motors, ICICI Bank, HDFC Bank and MTNL ended in negative territory. However, Satyam and Wipro ended with steady gains.

Crude oil prices in the international market edged lower, with the Nymex light crude oil for August delivery lost by $2.58 to close at $66.73 per barrel. In the commodity space, the Comex gold for August series lost $10.30 to settle at $931 a troy ounce.

Daily trend of FII/MF investment in equities
On July 02 2009, FIIs were net buyers of stocks to the tune of Rs402 crore (purchases worth Rs2,303 crore and sales of Rs1,901 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs207 crore (purchases worth Rs756 crore and sales of Rs963 crore).

Stocks with positive bias:- Powergrid (SL – 110.55), infra stocks (GMR infra, IRB, IVRCL), GE shipping, JP associates.
Stocks for investments:- IDBI, Balrampur chini , Bajaj Holdings,Emco