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, the bullish sentiment may help the market to get some buying support in initial trades. Among the key local indices, the Nifty could decline to 4325 on the downside while on the upside there is a near term resistance at 4480. The Sensex has a likely support at 14888 and may face resistance at 15256.

US indices tumbled Monday, as investors pulled back ahead of a two-day Federal Reserve meeting and following a big rally that pushed the Dow and S&P 500 to 9-month highs. While the Dow Jones tumbled by 32 points to close at 9338, the Nasdaq dropped 8 points at 1992.

Major Indian ADRs, too, buckled under selling pressure on the US bourses. ICICI Bank & MTNL slipped over 5%, Dr Reddy declined 3.75%, HDFC Bank dropped 3.01%, Tata Motors lost 2.46% and VSNL lost 2.57% while Infosys and Satyam slipped marginally. However, Patni Computers, Rediff and Wipro closed with the marginal gains.

Crude oil prices lost, with the Nymex light crude oil for September series lost by 33 cents to close at $70.60 a barrel. In the commodity space, the Comex gold for December series lost $12.60 to settle at $946.90 a troy ounce.