Market may remain volatile

The market may witness cautious trend as US indices closed on a firm note yesterday and Asian indices are exhibiting mixed 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. The market is likely to remain under pressure on account of unwinding of position ahead of July series derivative contracts. Among the local indices the Nifty could test 4550 and 4500 on the downside while on the upper side it may move up to 4300. The Sensex has a likely support at 15480 and may face resistance at 15850.

US indices advanced on Wednesday, influenced by positive earnings news surging off credit and housing market jitters. While the Dow Jones gained 68 points to close at 13785, the Nasdaq advanced by 12 points at 2651.

Indian ADRs had a mixed outing on US bourses. VSNL lost 2.97% while Satyam and ICICI Bank shed over 1% each. Among other laggards Infosys, Tata motors, HDFC Bank, Patni Computer and Rediff closed with the marginal losses. However, MTNL gained 2.80%, Wipro and Dr Reddy's Lab moved up marginally.

In the crude oil front, the Nymex light crude oil for September series surged by $2.32 to close at $75.88 per barrel. The bullion Comex gold for August delivery tumbled $11 to settle at $673.80 a troy ounce.