Weak global indices indicate negative open

The market is likely to remain under pressure following the weak Asian indices in the ongoing trades. However, prevailing strong bullish sentiment may help the market to remain positive with a sideways movement during intra-day trades. Among the major domestic indices, the Nifty could test 4904 on the downside and faces resistance at 5020. The Sensex has a likely support at 16613 and test higher levels of 17050.

US indices slipped Tuesday after a surprise drop in consumer confidence countered a better-than-expected housing market report. That added to lingering questions about the strength of an economic recovery. The Dow Jones lost 47 points to close at 9742 and the Nasdaq ended 7 points lower at 2124.

Indian floats trading on the US bourses had a mixed outing on Tuesday, the losers were, Dr Reddy lost over 4.70% while Tata Motors, HDFC Bank, Rediff and VSNL lost marginally. However, Wipro gained over 1% and Infosys, Satyam, ICICI Bank and Patni Computers gained marginally.

Crude oil prices declined marginally, with the Nymex light crude oil for November series sliding by 13 cents to close at $66.71 a barrel. In the commodity space, the Comex gold for November series advanced 30 to settle at $994.40 a troy ounce.

Daily trend of FII/MF investment in equities
On September 25 2009, FIIs were net buyers of stocks to the tune of Rs3312 crore (purchases worth Rs5440 crore and sales of Rs2128 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs107 crore (purchases worth Rs581 crore and sales of Rs688 crore.