Upmove may continue

The market is likely to stay firm on overnight gains in the US indices and strong Asian markets in morning trades. Major Asian indices like Nikkei, Hang Seng, Kospi, Straits Times and Jakarta Composite are trading with gains of more than 1% each. However, caution should be maintained on account of the prevalance of a intra-day volatility. Among the local indices, the Nifty could test higher levels around the 4850 level and has a support in the 4750-4690 range. The Sensex on the downside may slip to 16024 and may face resistance at 16208.

US indices rallied Wednesday, with the Nasdaq and S&P 500 ending at 11-month highs as investors welcomed a Federal Reserve report that indicated the economy is stabilizing. While the Dow Jones soared by 50 points at 9547, the Nasdaq advanced by 23 points at 2060.

The Indian ADR pack also rallied sharply on the US bourses. Satyam led the upmove and zoomed nearly 4% followed by Rediff & ICICI Bank gained above 3% each. While Infosys, Wipro, Tata Motors, HDFC Bank, VSNL and MTNL flared up marginally. However, Patni Computers lost over 0.50%.

Crude oil prices in the global market edged higher for Ocotober series rose by 21 cents at $71.31 a barreland in the commodity space, the Comex gold for December delivery slipped by $2.70 to settle at $997.10 an ounce.

Daily trend of FII/MF investment in equities
On September 08 2009, FIIs were net buyers of stocks to the tune of Rs1174 crore (purchases worth Rs3929 crore and sales of Rs2755 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs340 crore (purchases worth Rs1020 crore and sales of Rs680 crore).