Rally to continue

The market is likely to witness upward trend as major Asian gauges like the Nikkei, the Hang Seng index, the Kospi index and the Jakarta index have gained substantially in current trades and US Market also ended with a positive note. The domestic indices also gained by strong volatility on Tuesday and saw the index gain over 750 points during intra-day trades to finally closed above 18250 marks. However, strong intra-day volatility may weigh on the sentiment. Among the key indices, the Nifty is likely to resists around 5400 levels and has a key support at 5260 levels in the near-term. The Sensex has a likely support at 17500 and may face resistance at 18800.

Stocks rallied sharply on Tuesday, sending the Dow Jones to all-time highs as the minutes from the last Fed meeting supported hopes for another interest rate cut by the end of the year. While the Dow Jones moved up by 121 points at 14165, the Nasdaq managed to add 17 points at 2,804.

All the Indian floats had a field day on the US bourses. Patni Computer flared up by 4.36% and VSNL jumped 4.20% , while Dr Reddy's, Tata Motors, ICICI Bank, HDFC Bank, Infosys, Satyam, VSNL and Wipro gained over 1-3% each.

Crude oil prices moved above $80, with the Nymex light crude oil for November delivery gained by $1.24 to close at $80.26 a barrel. In the commodity space, the Comex gold for December delivery jumped by $4.40 to settle at $743.10 an ounce.