Sharp fall in global indices indicate negative open

Weakness across the global markets and rising global crude oil prices may drag down the local indices. Nervousness in the market is likely to continue following a slump in the overnight US market, escalating global crude oil prices and weak Asian indices in the morning trades. All the leading Asian indices like the Nikkie, the Hang Seng, the Straits Times, the Kopsi index and the Jakarta index are down over 2% each. Although the domestic indices moved up sharply in the last couple of sessions, intra-day volatility remains the major concern. Among the local indices, the Nifty may slip to 4550 while on the upside it could test the 4650 level. The Sensex has a likely support at 15480 and could test higher levels at 15850.

On the results front BPCL, Colgate, Deccan Cronical, Gail, GMR Infrastructure, Hindustan Construction, ITC, Madras Cement, Moser Baer, NIIT Technology, Punj Lloyds, Ramco Systems, Spice Tele, Tata Elexsi, Tata Chemicals, Television Eighteen, Titan, TVS Motors are scheduled to announce their numbers.

US indices tumbled on credit market and housing worries, as the Dow Jones slumped 312 points to close at 13475 while the Nasdaq ended 49 points lower at 2599 on Thursday.

All the Indian ADRs fell in tune with the broader market. Rediff led the slump and tumbled 13.4% followed by Patni Computers down by 5.46%, ICICI Bank and HDFC Bank slipped over 4% each. Wipro, Tata Motors, Satyam, Infosys, Dr Reddy's Lab and MTNL dropped over 1-3% each.

The Nymex light crude oil for September delivery slipped by 73 cents and closed at $75.88 per barrel. In the commodity space, the Comex gold for December series tumbled $11.40 to settle at $686.50 an ounce.