Caution should be maintained

After the broad-based national stock exchange Nifty hitting the 52 week high yesterday, buying interest can be seen in today's trades. However, caution should be exercised as the market may move in tandem with global indices. Except Nikkei index almost all the key Asian indices have gained marginally in the ongoing trades. Investors should also take into account the prevalence of strong intra-day volatility. Among the key local indices, the Nifty in short term could test higher levels at 4850 while it has a support at 4750. The Sensex has a likely support at 15700 and may face resistance at 16200.

The Indian ADR pack also rallied sharply on the US bourses. HDFC Bank & Patni Computers led the upmove and zoomed nearly 3% while Infosys, Wipro, Dr Reddy, HDFC Bank, MTNL, Rediff and Patni Computers flared up over 1-2% each. While rediff remained unchanged.

Crude oil prices in the global market edged higher Nymex light crude oil for October series rose by 6 cents at $68.02 a barrel. In the commodity space, the Comex gold for December delivery declined by $1 to settle at $996.70 an ounce.

Daily trend of FII/MF investment in equities
On September 06 2009, FIIs were net sellers of stocks to the tune of Rs57 crore (purchases worth Rs2208 crore and sales of Rs2265 crore).

Stocks with +ve bias – Sterlite (SL 699), Unitech (SL 111)
Stocks for short term delivery – Dena Bank (SL 51), Deep Ind Cmp 85
Stocks for Investment – United Phos, Bajaj Holdings, Apollo Tyres & ADSL