The domestic markets witnessed an extremely choppy session on Wednesday; the indices that started on a positive note could not continue their momentum along the session and closed with losses of about a percent. Sensex once again slipped below the 16000 mark, though it was the broader indices that helped the markets from further slide. Domestic investors were not looking convinced with improvement of situation at the global front and the worries of Greece debt issue was seen still looming on the Indian markets. There were no solid triggers from the domestic front that could have helped the indices to gain momentum and every bit of recovery was being countered by profit booking. On the same time the Prime Minister's economic advisory council's (EAC) recommendation to the government to start putting brakes on the expansionary policy weighed on all counters that could be affected by stimulus withdrawal. Though it was the consumer durables and the realty sector that continued their show of strength throughout the day otherwise the markets never looked convinced to stand steady at the high points. PSU sector that has been impacted since the lukewarm response of the NTPC FPO remained one of the laggards and suffered a setback with other FPO candidate SAIL turning down government's recommendation to issue bonus share before FPO. Finally the BSE Sensex closed lower by 120.01 points or 0.75% to 15,922.17 and the CNX Nifty closed at 4757.20, down by 35.45 points or 0.74%.

The US markets closed with marginal losses on Wednesday, the indices that made a good start declined on Federal Reserve Chairman Ben Bernanke's testimony on the Fed's strategy for dismantling the central bank's supports for improving economy. Meanwhile, the EU member nations have made no decisions about how to help Greece and the concern that financial woes in Greece as well as in Portugal, Ireland and Spain could spread and threaten a global economic recovery, was looming in the minds of investors. The Dow Jones Industrial Average fell 20.26 points, or 0.20%, to 10,038.38. The broader Standard & Poor's 500 index lost 2.39 points, or 0.22%, to 1,068.13, while Nasdaq composite index closed lower by 3.00 points, or 0.14%, to 2,147.87.

Crude prices moved higher for the third consecutive day on the back of upbeat estimates of global oil demand by the government and some weakness in dollar. The Energy Information Administration (EIA) has raised its 2010 forecast by 120,000 barrels per day to 1.2 million bpd in its latest outlook. Benchmark crude for March delivery settled up 77 cents, or 1.04 percent, at $74.52 a barrel, trading from $72.60 to $74.97 on the New York Mercantile Exchange. In London, March Brent crude ended up 41 cents, or 0.57 percent, at $72.54 a barrel.

The Indian rupee strengthened on Wednesday as the dollar continued to turn lower against euro. The rupee started strong on the back of recovery sign in global equity markets though, the early decline in the local share markets raised some concerns of fund outflow. The domestic currency was also getting support from the easing of external commercial borrowing norms by the central bank. FII continued their relentless selling in the equity segment though they remained net buyers in the debt segment. Finally the rupee closed at 46.50/51, 31 paise higher compared to its Tuesday's close of 46.81.

The FII on Wednesday were the net sellers in the equity segment with gross buying of Rs 1978.80 crore against gross sell of Rs 2374.40 crore, while in the debt segment they were the net buyers with a gross purchase of Rs 1128.00 crore against gross sales of Rs 536.00 crore.

The US markets declined marginally on Wednesday, Fed chief Ben Bernanke's statement for tightening the credit by raising the interest rate raised concerns among the investors. Though,the Asian markets don't seem to concerned with the US internal matters and have made a good start with some indices trading up by more than a percent. The domestic markets that closed lower after a choppy session in previous session is likely to get a positive start though the mood will remain cautious as investors are not leaving any opportunity of profit booking.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                          Nifty Top volumes

• Unitech has received Rs 2022 crore from Telenor Asia for acquisition of further 7.15 per cent stake in Unitech Wireless.
• Suzlon Energy has said that it has no plans at present to sell its remaining 26.06% stake in Belgian turbine gearbox maker Hansen Transmissions.
• DLF has said that it plans to raise Rs 1,000 crore through unsecured loans by the end of this month.
• BHEL has bagged an order worth Rs 495 crore for setting up a 330 MW (3x110 MW) hydro electric project in the state of Jammu and Kashmir.
• L&T has got the preliminary approval of IRDA to set up its general insurance business.