Sensex to remain volatile

On a day when there are mixed signals from the global indices, Indian markets are expected to trade in a range bound territory. On Friday, the major US indices closed losing 0.50%-1.22% each, while the European markets (FTSE 100) on Friday gained 0.68%. While coming to the Asian markets, except for China's Shanghai Composite that lost close to 0.43% in todays trade, rest all the indices were trading in positive zone with the gains in the range of 0.16%-1.71% each, with Hong Kong's Hang Seng gaining the most. Beside, Singapore Nifty that opened with marginal gains was currently trading 13 points higher to its previous day’s settlement price. Considering such mixed performance by the global indices, Sensex could open today with marginal gains and may remain volatile, however the Q2 numbers to be announced today may cheer the markets. Among the local indices, the Nifty could test the 5050- 5075 range on the up side while on the down side it could find support at 4950 and 4910. The Sensex is likely to get support at 16606 and may face resistance at 17000.

On the back weak Q2 performance by the industrial companies, Dow fell below the significant 10000 level and closed with loss of 109 points or 1.08% lower at 9972, while S&P 500 and Nasdaq slumped by 1.22% and 0.50% respectively.

Among the Indian ADRs trading on the US bourses Infosys, Satyam, Rediff, Dr Reddy's and Wipro closed with gains of 0.27%-3.71% each, with Dr Reddy's gaining the most. While the ADRs that includes ICICI Bank, HDFC Bank MTNL, Tata otors, VSNL and ended the day with the losses in the range of 0.35%-3.21% each, with MTNL falling the most.

In the commodity space, Crude oil prices fell marginally, with the Nymex light crude oil for November series declining by $0.69 to close at $ 80.50 a barrel. In the metals space, the Comex Gold for December series declined by $2.20 to settle at $1056.40 a troy ounce, while Comex Silver for December series rose by $0.18 to settle at $17.72 a troy ounce.

Daily trend of FII/MF investment in equities

On October 23, 2009, FIIs were the net sellers of the Indian Stocks in the tune of Rs295.70 crore (with the gross purchase of Rs2682.50 crore and gross sales of Rs2978.30 crore).

Headlines for the day

RBI mulls allowing banks to decide on branches

Reliance Infra tells EGoM to stop Reliance Industries marketing margin

Voith acquires L&T stake in JV arm

Maruti Q2 net races 93%

Telecom Companies to expand optical fibre network

Events for the day

Major results: Aban Offshore, Wipro, Idea Cellular, Canara Bank, Castrol, Tata Motors, Tata Communications, GMR Infrastructure, Dabur India, GMDC, Lupin, Neyveli lignite, United Phosphorus, Hindustan Motors, NIIT

Major corporate action: Asian Paints ex-date for the interim dividend, stock spilt of Gammon Infrastructure and REI Six Ten retail from Rs10 to Rs2