Market may stage a comeback

The modest rally in the US markets and a rise in several Asian indices in the ongoing trading session may help the domestic indices pull-back from lower levels. However, lack of clarity in the market and volatility may drag down the market. Among the indices, the Nifty could face a resistance at 2800-2850 levels and has a likely supports at 2700-2650 levels. The Sensex has a likely support at 8700 and may test higher levels of 9000.

US indices surged on Tuesday, with the major stock gauges ending higher for the fifth out of six sessions, as investors continued to dig out from 12-year lows. While the Dow Jones moved up by 179 points at 7,396, the Nasdaq managed to add 58 points at 1,462.

Barring few, most of the Indian floats had a field day on the US bourses. Tata Motors flared up by 12.86% and Patni Computers jumped 6.37% , while MTNL, ICICI Bank, Dr Reddy's, HDFC Bank, Infosys and Wipro gained around 1% each. Among the laggards Satyam slipped 7.06% and VSNL fell 1.12%.

Crude oil prices gained a little, with the Nymex light crude oil for April delivery raising by $1.81 to close at $49.16 a barrel. In the commodity space, the Comex gold for April delivery slipped by $5.20 to settle at $916.80 an ounce.