Market on a zigzag road, but upmove continues

Drop in the Chinese market dampened the sentiment on Dalal Street yesterday but it was more related to the fears of overvaluation. The market is taking cues from international markets and the mixed global cues likely to weigh on the local indices in the morning trades. However, the prevailing bullish trend may add to the market advantage and help the sentiment turn positive. Among the domestic indices, the Nifty could test 4300 and below this level next support is in 4220-4202 range, while on the upside it could edge higher to 4320. The Sensex has a likely support at 14100 and may face resistance at 14700.

Among the Us indices the Dow industrials closed at record highs Monday, despite a steep decline in Chinese stocks and higher crude prices. While the Dow Jones gained over eight points, the Nasdaq moved up by four points.

Indian floats trading on the US bourses had a mixed outing on Monday, the gainers were, VSNL gaining over 2% while Dr Reddy's, HDFC Bank and Rediff gained marginally. However, Tata Motors slipped over 4% and MTNL, Infosys, Satyam, Wipro, Patni Computer and ICICI Bank dropped around 1-2% each.

Crude oil prices are moving up gradually, while the Nymex light crude oil for July delivery rose by $1.13 to close at $66.21 a barrel. In the commodity segment, the Comex gold for August series dropped by 60 cents to settle at $676.30 an ounce.