The opening at the Indian bourses was expectedly negative following weakness at the Asian bourses. However, after plunging further, it pulled back sharply to recover in late trade, with an additional boost in the form of a positive opening in the European markets.  The market breadth thus turned positive at the end of the day.

From the 30-member Sensex pack, 16 gained while the rest declined. Sun Pharmaceuticals (up 1.88%), ONGC (up 1.82%), and Tata Power (up 1.32%), were the gainers among the Sensex stocks. Telecom stocks advanced on bargain hunting after the recent fall after reports indicated that the 3G spectrum auction will be delayed till the next fiscal.

IT stocks played the lead role in the recovery boosted by a weak rupee.  Rate sensitive banking shares recovered from the day's low on value buying as did the index heavyweight, Reliance Industries.

The Government today forecast its economic growth for the fiscal year ended March 2010 at 7.2%, as against 6.7% achieved in the previous fiscal. This news cheered the markets but also raised fears that the Government unwind its fiscal stimulus in the forthcoming budget.

The very strong listing of Jubilant Foods today would bring cheer to the primary market after the retail non-response to the NTPC FPO. Those who have got in at this counter can consider riding the mometum with a trailing stop profit in place as valuations now seem extremely stretched.  

Overall, the comforting factor remains that the Nifty has managed to find an intermediate support near the 4700 points mark from where it has bounced back twice recently. However, even for an intermittent relief rally to commence, the level of 4800 points needs to be convinceingly taken out.

Tomorrow’s trade too is likely to be dominated by global cues at the opening, but watch out for stocks like Tata Steel, where bears seem to have moved in.

On the other hand, the late spurt of buying at the Reliance Industries counter suggests that there are enough takers for this stock at the three digit price level.