Bias may remain bullish

The Nifty is set to touch all time new high, firm Asian indices in morning trades and prevailing bullish trend likely to generate optimism in morning trades. The market may see some short-term profit bookings in frontline stocks which may create a volatility in the afternoon. Among the domestic indices, the Nifty could test higher levels of 4245 and may dip to 4120 on the downside. The Sensex has a likely support at 14000 and may face resistance at 14600.

US indices gained immense strength on Friday, with the Dow Jones soaring by industrial average closing at another record as investors hailed merger news from Microsoft and talk of a deal involving General Electric. The Dow gained 80 points to close at 13557, the Nasdaq also ended firm with gains of 19 points at 2558.

Indian ADRs had a mixed outing on Friday. ICICI Bank was the major gainer amongst the ADRs and gained 1.40%, while Satyam, Dr Reddy's, Tata Motors, Patni Computer and HDFC Bank were up around 1% each. Among the losers Rediff shed 1.43% and Infosys, Wipro, MTNL and VSNL fell around 1% each.

Crude oil prices moved up, while the Nymex light crude oil for June series went up by 8 cents at $64.94 a barrel. In the commodity segment, the Comex gold shot up by $4.80 to settle at $662 an ounce.