Volatility continues

The market is likely to witness sideways movement on the back of a strong intra-day volatile move. Stocks across the sectors along with heavyweights may gyrate sharply. Overnight weakness in the US indices and mixed Asian markets in morning’s trades may further dampen the investors' sentiment. On the technical side, the Nifty has a stiff resistance at 4755-4810 levels and the downside strong support at 4641-4579, while the Sensex could test higher levels of 16063 and has a likely support at 15697.

US indices lost ground on Wednesday as investors became cautious in the wake of some weaker-than-expected economic reports. The Dow Jones industrial average (INDU) gave up 39 points, at 9281 and the tech-heavy Nasdaq composite (COMP) eased 18 points, at 1993.

Most of the Indian ADR's fell on the US bourses. MTNL was the biggest loser and dropped over 3.50% while Infosys, Dr Reddy, Tata Motors and VSNL were down around 1% each. However, Rediff soared over 6% while Satyam, Patni Computers and Wipro gained around 1% each.

Crude oil prices in the US market edged higher, with the Nymex light crude oil for September delivery up by 55 cents to close at $71.97 per barrel. In the commodity segment, the Comex gold for December series dropped by $3.40 to settle at $966.30 an ounce.

Daily trend of FII/MF investment in equities
On August 04, 2009, FIIs were net buyers of stocks to the tune of Rs207 crore (purchases worth Rs 2781 crore and sales of Rs 2574 crore). while domestic mutual funds were net buyers of stocks to the tune of Rs25 crore (purchases worth Rs879 crore and sales of Rs854 crore).