Market may witness volatile trading

Intra-day volatility may see the market swing both ways and hold back the local players from taking fresh positions. The weak FII participation in the last few sessions is also weighing on the sentiment. The Nifty may witness resistance at 3980 on the upside while the near-term strong support at 3935 is seen on the downside. The Sensex has a likely support at 13750 and could witness resistance at 13840.

US indices ended with loss on Friday, While Dow Jones lost 38 points at 12463, the Nasdaq was up 10 points at 2415.

Indian ADRs largely had a negative outing on the US bourses. Among the laggards ICICI Bank moved down 1.67%, MTNL sheded 1.55% and Infosys, Satyam, Wipro, Dr Reddy's, Tata Motors and HDFC Bank declined 1% each, while VSNL advanced 2.4% while VSNL and Patni Computers ended at higher levels.

In the commodity segment, the Comex gold for the february series gained $1.10 to settle at $638 an ounce. The Nymex light crude oil for February delivery jumped 52 cents to close at $61.05 a barrel.