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Tuesday, September 16, 2008

Market may plunge again


After falling over 450 points yesterday, the market is likely to fall further today on the back of weak global cues. Uncertainty is likely to prevail on lack of fund buying in the domestic market and the trend in the international markets. A fall in Asian indices in the ongoing trades may see the market resume on a weak note and could slip further during intra-day trades on sharp volatility. Among the local indices, the Nifty may slip to 4000 and 4110 while on the upside it could test 4110 to 4150 level. The Sensex has a likely support at 13400 and could test higher levels at 13700.

US indices saw worst day in 7 years on Monday, with the Dow Jones slumped 504 points to close at 10918 and the Nasdaq ended 81 points lower at 2180.

All the Indian ADRs fell in tune with the broader market. Satyam led the slump and tumbled 14.37% followed by ICICI Bank (down 12.53%), Patni Computer (down 11.15%) and HDFC Bank (down 10.48%). while Infosys, Rediff, Dr Reddy's, Tata Motors, MTNL and VSNL slipped by over 3-7% each.

Crude oil prices in the international market slipped, with the Nymex light crude oil for September delivery slipped by $5.47 at $95.71 a barrel. In the commodity segment, the Comex gold for December series gained $22.50 to settle at $787 an ounce.