Gains may continue

The market is likely to see further action on the back of a firm US markets and over 1-2% gains in majority of the Asian indices in the prevailing trades. Surging FIIs fund inflows coupled with firm economy outlook also may help the market advance further. Among the key local indices, the Nifty has a strong support between 2900-2850 range, while on the upside the index could test higher level in the 3000-3050 range. The Sensex has a likely support at 9275 and may face resistance at 9600.

The Dow Jones soared about 500 points to a close on Monday, posting its biggest gain since November, after Treasury's plan to buy up billions in bad bank assets and a better-than-expected existing home sales report raised hopes that the economy is stabilizing. While the Nasdaq surged by 99 points at 1556 and Dowjones gained 497 points at 7776.

All the Indian ADRs witnessed strong buying support on US bourses. HDFC Bank notched up significant gains and soared over 23% . The other Indian floats, Wipro, MTNL, ICICI Bank, Tata Motors and VSNL surged over 12-16% each. while Infosys, Satyam, Dr Reddy's, Rediff and Patni Computers were up around 3-7% each.

Crude oil prices gained marginally. The US light crude oil for April series advanced by $1.73 at $53.80 a barrel. In the commodity space, the Comex gold for April delivery declined by $3.70 to settle at $952.50 an ounce