Market may exhibit caution

The market may exhibit cautious trend after taking a dip in yesterday's trades. Also the strengthening rupee against dollar may dampen the market sprit. On the positive side, FII have turned net buyers in the equities in the last few sessions and Asian indices are trading higher in current trades. Among the local indices, the Nifty has a support at 3945 and on the break below 3945 the next support is at 3920, while on the upside the Nifty could move towards the 4055-4075 range. The Sensex has a likely support at 13400 and may face resistance at 13855.

Among US indices Dow closed just below the record high on Tuesday as investors welcomed lower oil prices and strong earnings numbers from Coca-Cola and Johnson & Johnson. While the Dow Jones gained by 53 points to close at 12773, the Nasdaq ended a point lower at 2517.

Indian ADR losers pipped gainers on the US bourses. Patni fell sharply and tumbled over 3% while Satyam, Tata Motors, MTNL, and VSNL declined over 1-2% each, while Infosys and ICICI bank ended with steady gains.

The Nymex light crude oil for May delivery slipped by 51 cents to close at $63.10. In the commodity space, the Comex gold for June series declined $2 to settle at $692.50 a troy ounce.