Market may resume on a positive note

The market is likely open on a firm note on Wednesday's gains in the US indices and strong Asian markets in morning trades. Major Asian indices like Nikkei, Hang Seng, Kospi, Straits Times and Jakarta Composite are trading with gains of around 1% each. However, caution should be maintained on account of the prevalence of a intra-day volatility. Among the local indices, The Nifty may drift down to 4300 levels. On a break below 4300, the next short-term support is at 4250 and could test higher levels around 4400. The Sensex on the downside may slip to 14500 and may face resistance at 14800.

US indices registered another high on Wednesday, with investors starting off the third quarter on a positive note, after reports on manufacturing and housing added to bets that the pace of the recession is slowing. While the Dow Jones gained by 57 points at 8504, the Nasdaq advanced by 11 points at 1846.

The Indian ADRs witnessed decent to firm buying support on US bourses. Satyam & ICICI Bank were the major gainer amongst the ADRs and vaulted over 4% each, while Tata Motors propelled 3.87%. VSNL, Rediff, Infosys, Dr Reddy, MTNL, Patni Computers and HDFC Bank were up over 1-2% each. Wipro however lost marginallly and closed in negative territory.

The Nymex light crude oil for August series slipped by 58 cents at $69.31 a barrel. In the commodity space, the Comex gold for August delivery rose by $13.90 to settle at $941.30 an ounce.