Markets traded under the custody of volatility on Wednesday, resulting in an end of a three-day winning streak for the benchmark indices. Global equities failed to offer any assistance and wide divergence in opinion regarding markets' direction led to constant swings in the benchmarks. After a shaky start, market went on the front foot by mid-morning trades, but had to soon succumb to the pace of selling activity. Since then every attempt to recover was promptly attacked and finally it was volatility that won the game in the last half hour of trade. Unlike benchmark indices, broader indices handled the pressure quite well and managed to pocket respectable gains. Metal, fast moving consumer goods and software shares played a crucial role in capping major losses on the bourses, while the day's restlessness can be mainly attributed to stocks from oil & gas, banking and capital goods space. Finally, the 30-share BSE Sensex dropped 51.87 points or 0.30% to end at 16,998.78, while the S&P CNX Nifty slipped 7.55 points or 0.15% to settle at 5054.70.

The US markets closed marginally lower on Wednesday, the unexpected drop in home construction and worrisome outlooks from major software companies led the decline in the markets. The decline brought stocks off the fresh 13-month highs reached on Tuesday. The technology sector was the hardest hit after Autodesk Inc. forecast fourth-quarter earnings below expectations, and Salesforce.com Inc. reported a slowdown in new business. The Commerce Department said construction of homes and apartments fell 10.6% in October to an annual rate of 5, 29,000. The Dow Jones Industrial Average lost 11.11 points, or 0.11%, to 10,426.31. The broader S&P 500 index was marginally down by 0.52 points, or 0.05%, to 1,109.80, while the Nasdaq closed lower by 10.64 points, or 0.48%, to 2,193.14.

The crude prices moved up for the third consecutive day on Wednesday, the government report that crude inventories fell last week initially gave a boost to the crude but later when Commerce Department reported that home building declined, the crude prices pared some of its gain. Benchmark crude for December delivery settled up 44 cents at $79.58 a barrel, trading from $78.67 to $80.33 on the New York Mercantile Exchange. In London, January Brent crude ended up 50 cents at $79.47 a barrel, on the ICE Futures exchange.

The Indian rupee recovered slightly on Wednesday despite the strengthening of dollar. The rupee remained range bound through out the day as the stock markets remained choppy, unable to give any cue to the domestic currency. The rupees closed at 46.22,10 paise stronger compared to its Tuesday's close of 46.32.The foreign funds have been consistent buyer of the Indian equities for the last couple of days.

The FII on Wednesday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 2379.40 crore against gross sell of Rs 1785.60 crore, while in the debt segment the gross purchase was of Rs 874.60 crore with gross sales of Rs 260.10 crore.

The US markets finally gave up and declined marginally on Wednesday, the decline in homebuilding again raised concerns about the economic recovery and its stability. The Asian markets have once again made a mixed opening with some of the indices trading lower by about 1%.The domestic markets went in a consolidation mood in previous trading after a very choppy session, investors are taking cautious step as the continuous recent rally has put a sense of correction in the markets. Today the markets are likely to make a cautious opening.

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

                                                             Nifty Top volumes

• Suzlon Wind Energy Corp., the North American subsidiary of Suzlon Energy has bagged a new order for the community-based Grant County Wind Farm.
• Telenor has slashed its capex by Rs 3,500 crore for its mobile joint venture with Unitech.
• Tata Steel has achieved one million injury-free man hours at their fabrication yard for the 12-million-tonne Kalinga Nagar steel complex in Orissa.
• Larsen & Toubro (L&T) has decided to sell its Petroleum Dispensing Pump (PDP) business unit to the US-based Gilbarco Veeder-Root.
• SAIL is exploring opportunities to acquire operational and exploration licences for coking coal mines overseas.

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