Gains may continue

The market is likely to see further action on the back of a firm US markets and over 1% gains in majority of the Asian indices in the prevailing trades. Surging FII fund inflows coupled with firm economy outlook also may help the market advance further. Among the key local indices, the Nifty has a strong support between 4671-4595 range, while on the upside the index could test higher level in the 4780-4825 range. The Sensex has a likely support at 15800 and may face resistance at 16063.

The US Stocks, coming off the best July in two decades, got a strong August start Monday after better-than-expected readings on manufacturing and car sales added to bets that the economy is starting to stabilize. While Dow Jones industrial average (INDU) added 115 points, or 1.3%, ending at a fresh 9-month high and the Nasdaq composite (COMP) gained 30 points, or 1.5%, closing above 2,000 for the first time since last November.

Indian ADRs witnessed strong buying support on US bourses. Rediff notched up significant gains and soared over 13% . The other Indian floats, Satyam, Tata Motors, ICICI Bank, MTNL and Wipro surged over 4-7% each. while Infosys, Dr Reddy's, HDFC Bank, VSNL and Patni Computers were up around 1-3% each.

Crude oil prices gained sharply. The US light crude oil for September series advanced by $2.13 at $71.58 a barrel. In the commodity space, the Comex gold for December delivery surged by $3 to settle at $958.80 an ounce.