Bias may remain negative

After falling by more than 450 points for last two sessions, the south-bound journey may continue further on weak international markets and mixed Asian indices in morning trades. Among the local indices the Nifty could test 4045 and 4025 on the downside while on the upper side it may move up to 4120. The Sensex has a likely support at 14100 and may face resistance at 14300.

US indices tumbled on Monday after 3.5% drop in oil prices and worries about rising mortgage defaults. While the Dow Jones dropped 28 points at 12553, the Nasdaq fell by 9 points to close at 2450.

Barring Dr Reddy's lab all the Indian ADRs had a weak outing on the US Bourses. VSNL crashed by a huge 10% and MTNL tumbled 8% while Infosys, Wipro, Patni Computers, Tata Motors, HDFC Bank and Rediff fell over 1-3% each.

Crude oil prices dropped on the reports that OPEC may steer away from further supply cuts. The Nymex light crude oil for March series declined by $2.08 to close at $57.81 a barrel. In the commodity segment, the Comex gold for April delivery dropped $5 to settle at $667.30 a troy ounce.