Market may remain firm

After displaying a solid pull-back in yesterday's trades the market is likely to show firm trend in early trades and may advance further on cooling US credit markets woes and falling oil prices. The market is also likely to get support from firm Asian markets which are up over 2% in current trades. However, the market may exhibit caution owing to lack of clarity and higher volatility. Among the indices, the Nifty could test higher levels at 4208 and 4240, and has a supports at 4060. The Sensex has a likely support at 14100 and may face resistance at 14500.

US markets shot up on Wednesday on speculation that the breakdown in credit markets won't hurt the economy. While the Dow Jones flared up by 145 points at 13,236, the Nasdaq moved up by 32 points at 2,553.

All the Indian floats had a field day on the US bourses. Rediff jumped 4.49%, HDFC Bank surged 4.26% and Satyam Computer moved up by 4.13% while Tata Motors, Wipro, Infosys, Patni Computer, VSNL, MTNL and Dr Reddy's Lab gained around 1-3% each.

Crude oil fell on Wednesday after a government report showed U.S. crude inventories rose unexpectedly last week, easing supply concerns. The US light crude oil for October delivery moved down by 31 cents at $69.26 a barrel. In the commodity segment, the Comex gold for December delivery gained by $2.50 to settle at $668.70 an ounce.