May open flat tracking global cues

The market is likely to remain under pressure following an overnight fall on the US market and weakness among major Asian indices in the ongoing trades and it may exhibit strong volatility during the intra-day trades. However, continuing higher foreign fund inflows and prevailing bullish sentiment may help the market to get some buying support in initial trades. Among the key local indices, the Nifty could decline to 4250 on the downside while on the upside there is a near term resistance at 4350. The Sensex has a likely support at 14350 and may face resistance at 14650.

US indices tumbled Tuesday, at the end of the S&P 500's best quarter in more than a decade, with a weaker-than-expected consumer confidence report and a slump in oil prices sparking the selloff. While the Dow Jones tumbled by 82 points to close at 8447, the Nasdaq dropped 9 points at 1835.

Major Indian ADRs, too, buckled under selling pressure on the US bourses. Tata Motors slipped 9.36%, ICICI Bank declined 4.60%, Satyam dropped 4.22%, HDFC Bank lost 2% and Infosys lost 1.24% while Wipro, MTNL, Rediff and Patni Computers slipped marginally. However, Dr Reddy and VSNL closed with the marginal gains.

Crude oil prices lost, with the Nymex light crude oil for August series lost by $1.60 to close at $69.89 a barrel. In the commodity space, the Comex gold for August series lost $13.30 to settle at $927.40 a troy ounce.