Volatility remains key factor

The market may move in tandem with the Asian markets which are currently trading weak followed by overnight fall in US markets. The Nikkei index, Hanng Seng index are currently down around 0.50%- 1% each. On liquidity front FIIs remaining net buyers in equities may help the sentiment to turn positive. On the upside, the Nifty could test the recent high around the 5260 level and may witness support around the 5180 level. The Sensex has a likely support at 17650 and may test higher levels of 18200.

US indices finished on a weak note on Wednesday, ahead of the September jobs report, due Friday. The Dow Jones dropped 79 points to close at 13968 while the Nasdaq slipped by 18 points at 2729 amid weak tech stocks.

The Indian floats trading on the US bourses closed with moderate to heavy losses. Among the major losers MTNL and HDFC Bank slipped over 3%-5% while Infosys, Satyam, Wipro, ICICI Bank, VSNL, Rediff and Patni Computers fell over 0.50%-2% each. However, Tata Motors gained marginally.

Crude oil prices in the global market declined yesterday. The Nymex light crude oil for November series slipped by 11 cents at $79.94 per barrel. In the commodity segment, the Comex gold for December delivery slumped 60 cents to settle at $736.30 an ounce.