Weak opening following Asian indices

After witnessing a sharp slump of over 1000 points in last week's trading, the market is likely to remain shaky as global commodity markets fell further and the FIIs continued to remain net sellers of equities in the local market. Although domestic mutual funds have been providing cushion by remaining net buyers, the sentiment is likely to remain bearish on weak global indices. Among the key domestic indices, the Nifty may get support at 3950 and a break below this level could see the index slip further to 3900. The Sensex has a likely support at 13350 and may test higher levels at 13650.

US indices closed mixed on Friday, with the Dow Jones sliding over 37 points to close at 8147 while the Nasdaq gaining by 3 points at 1756.

Indian ADRs had a mixed outing on US bourses. Dr Reddy, Rediff ,HDFC Bank, ICICI Bank, Tata Motors, MTNL and VSNL dropped around 1-4% each. While, Infosys gained 4.23% while Satyam, Wipro and Patni Computers were up around 1% each.

Crude oil prices edged lower, with the Nymex light crude oil for August series moved down by 52 cents to close at $59.89 a barrel, off its day's low of $59.10 In the commodity segment, the Comex gold for August delivery slumped $3.70 to settle at $912.50 an ounce.

Daily trend of FII/MF investment in equities
On July 07 2009, FIIs were net sellers of stocks to the tune of Rs292 crore (purchases worth Rs2345 crore and sales of Rs2637 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs257 crore (purchases worth Rs747 crore and sales of Rs490 crore).