Market may edge lower

The market is moving in tune with global markets and the weak Asian indices in current trades coupled with overnight fall in the US markets is likely to weigh on the local indices. Although the sentiment is likely to remain bearish on weak global indices. The domestic funds resorting to selling of equities could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 4950 on the downside while on the upside there is a near term resistance at 5050. The Sensex has a likely support at 16650 and may face resistance at 17050.

Stocks slumped Thursday, falling for the second straight session, as a surprise drop in existing home sales and tumbling commodity prices gave investors a reason to sell into a rally that pushed the major gauges to one-year highs. While the Dow Jones shed 41 points at 9707, the Nasdaq was down 24 points to close at 2108.

Most of the Indian ADR's fell on the US bourses. VSNL was the biggest loser and dropped over 6% followed Rediff declined 4.69%, while Infosys, Satyam, MTNL, Wipro, Tata Motors, ICICI Bank and Patni Computers were down around 0.50-3% each. However, Dr Reddy soared over 5.35% while HDFC Bank gained around half a percent.

Crude oil prices gained sharply, with the Nymex light crude oil added $4.86 at $39.48 per barrel. In the metals segment, the Comex gold for April series lost $1.70 to settle at $976.50 an ounce.

Daily trend of FII/MF investment in equities
On September 23 2009, FIIs were net buyers of stocks to the tune of Rs1833 crore (purchases worth Rs4311 crore and sales of Rs2478 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs110 crore (purchases worth Rs886 crore and sales of Rs776 crore.

SINGAPORE NIFTY @ 9.20AM = 4941.50 (-60.50)

Stocks with +ve Bias: RCOM, India Infoline (Sl 145)
Stocks with -ve Bias: Cairn, Punj lloyd, Sterlite
Stocks for Investment: Apollo tyres, ADSL , U.Phophorus ,Emco