Volatile streak may continue

The major US and European indices on Tuesday ended in the red. However, in today's trade, the Asian indices were trading stronger except for the Nikkei 225. Such mixed cues are expected to keep the Indian markets volatile. However the Q2 numbers may surprise the markets. The US market on Tuesday closed almost flat, while the European markets traded lower by 1%. However the Asian markets in today’s trade were giving a a strong performance. Amongst the Asian indices, except for Nikkei 225 that lost 0.25%, other major indices traded in green. The Shanghai Composite rose 2.10%, Straits Times were trading marginal higher by 0.23%, while Hang Seng and Taiwan Weighted recorded gains of 1.44% and 1.06% respectively. Among the local indices, the Nifty could test the 5150- 5230 range on the upside while on the down side it could find support at 4800 and 4660. The Sensex is likely to get support at 16450 and may face resistance at 17200.

On the back of weakness in the financial sector and the some disappointments on the quarterly results front, the US markets on Tuesday closed in red with marginal losses. Dow fell by 14.74 points to close at 9871.06, while S&P 500 declined by 3 points to 1073.19 and Nasdaq ended 0.75 points up at 2139.89. While the Singapore Nifty, in the today morning's trade was trading higher by 37 points over its previous settlement price.

Among the Indian ADRs trading on the US bourses, it was only Tata Motors, Wipro, and Rediff that closed in negative zone with the losses in the range of 0.44%-1.64%. The ADR of companies like Infosys, HDFC Bank, VSNL and ICICI Bank, MTNL gained over 0.27-1.73% each. While the ADR of Satyam remained unchanged.

In the commodity space, Crude oil prices advanced marginally, with the Nymex light crude oil for November series rose by $0.88 to close at $74.15 a barrel. While in the metals space, the Comex gold for December series advanced sharply by $7.50 to settle at $1065.00 a troy ounce.

Daily trend of FII/MF investment in equities

On October 12 2009, FIIs were net buyers of stocks to the tune of Rs250.70 crore (purchases worth Rs3282.50 crore and sales of Rs3031.80), while domestic mutual funds on October 09, 2009 were net sellers of stocks to the tune of Rs 288.50 crore (purchases worth Rs797.80 crore and sales of Rs1086.30 crore.