Bias may remain positive

The strong overnight gains in the US markets and positive opening in all the major Asian Indices may help Sensex open higher. While the Q2 results will set the trend of the market in the coming period. However, strong optimism amongst investors could help the sentiment remain positive. Among the local indices, the Nifty could test the 5100-5150 range on the upside while on the down side it could find support at 4700 and 4660. The Sensex is likely to get support at 16250 and may face resistance at 17200.

US indices on Tuesday recorded gains for the second straight session, following the weaker dollar that boosted the commodity and dollar sensitive stocks. The major US indices posted a strong performance. While the Dow Jones rose by 132 points to close at 9731.25, the Nasdaq also ended 35.42 point up at 2103.57.

Among the Indian ADRs trading on the US bourses, HDFC Bank led the upward move and gained 4% while Infosys, Wipro, Dr Reddy, Tata Motors, ICICI Bank, Patni Computers, Rediff and VSNL gained over 1-2% each, MTNL however closed in negative territory with loss of 2%.

Crude oil prices advanced, with the Nymex light crude oil for November series gained by 47 cents to close at $70.88 a barrel. In the commodity space, the Comex gold for December series advanced $21.90 to settle at $1039.70 a troy ounce.

Daily trend of FII/MF investment in equities

On October 05 2009, FIIs were net sellers of stocks to the tune of Rs237.5 crore (purchases worth Rs3709.6 crore and sales of Rs3947.10) while domestic mutual funds were net sellers of stocks to the tune of Rs 776 crore (purchases worth Rs990 crore and sales of Rs1766 crore.