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Tuesday, December 30, 2008

Market may remain volatile


The market may witness cautious trend as US indices ended on a negative note yesterday and Asian indices are exhibiting upward trends in the morning trades. Although the bias remains positive, investors should maintain caution as profit taking at higher levels may pull down the market. Among the local indices the Nifty could test 2880 and 2840 on the downside while on the upper side it may move up to 2950. The Sensex has a likely support at 9400 and may face resistance at 9700.

US indices finished on a negative note on Monday. While the Dow Jones ended in a negative at 8484 declined by 32 points, the Nasdaq down by 20 points at 1510.

Except Infosys and Rediff all the Indian ADRs traded firm on the US bourses. HDFC Bank led the pack with gains of over 9.61% while Wipro, ICICI Bank, Tata Motors, Satyam and MTNL jumped over 6-8% each. Among other gainers Dr Reddy's, VSNL and Patni Computer gained marginally.

Crude oil prices inched higher in the US market, with the Nymex light crude oil for February delivery adding $2.31 to close at $40.02 a barrel. In the commodity space, the Comex gold for February series gained $4.10 to settle at $875.30.