Key equity indices extended their winning streak to third successive day on Tuesday as investors put the concerns about European debt crisis on the back burner tracking good buying opportunity in the blue-chip stocks after three consecutive weeks of selling decline. The markets started the day on a flat note led by mixed cues from the regional peers and drifted lower within few minutes of trade to touch day's lows. Concerns about partial rollback of stimulus in the upcoming Union Budget by the government also played spoilsport in early trades. They recouped all their losses in mid-morning trades prompted by the bargain hunting from marketmen in software and technology pivotals. The main indices continued to add weight amid volatility as recovery in other Asian equities and higher US index futures lifted sentiments. The markets remained more or less steady in the latter part of the day but some last hour profit taking resulted in minor drop towards the end. The BSE's 30-share Sensex managed to settle above the psychological 16,000-level while the NSE's 50-share Nifty could not hold on to the 4800-mark. Cement and public sector undertaking stocks showed good strength in the second half of the day. Meanwhile, high beta - realty stocks remained subdued in trade as the Reserve Bank of India (RBI) ruled out allowing any further restructuring of loans to real estate companies. Finally, the BSE Sensex soared 106.57 points or 0.67% to end at 16,042.18 while the S&P CNX Nifty gained 32.25 points or 0.68% to shut shop at 4792.65.

The US markets rebound on Tuesday. The markets across the globe seem to have stabilized on hope that the European Union will help Greece manage its growing debt burden. Greece implemented various measures from Tuesday, like pledge to increase retirement ages, raise fuel taxes and accelerate reforms. However a strike over the government's new austerity measures is still expected to proceed on Wednesday. Dow Jones Industrial Average surged by 150.25 points, or 1.52%, to 10,058.64. The Standard & Poor's 500 index added 13.78 points, or 1.30%, to 1,070.52, while the Nasdaq composite index closed higher by 24.82 points, or 1.17%, to 2,150.87.

Crude prices extended their gains on Tuesday, surging by more than 2.5 percent. The strength in euro against dollar and the sense of stabilization with European Union efforts to rescue Greece, led the rally in crude prices despite a volatile trade. Benchmark Crude oil for March delivery settled up $1.84, or 2.56%, at $73.73 a barrel, trading from $71.32 to $74.15 on the New York Mercantile Exchange. In London, March Brent crude rose $2, or 2.85%, to $72.11 a barrel.

The Indian rupee made a good recovery on Tuesday after declining to its seven week low in the previous session. The rupee started strong tracking the gains in the regional stock markets and the overnight decline in the dollar against other major currencies, the euro inched up against the dollar after declining to hit a low of more than eight months in last week. The rupee got a momentum with good going of the local share markets that advanced after a choppy trade. Though, the FII once again emerged as net sellers in the equity segment. Finally the rupee closed at 46.66/67, 15 paise higher compared to its Monday's close of 46.81.

The FII on Tuesday were the net sellers in the equity segment with gross buying of Rs 1741.80 crore against gross sell of Rs 2548.30 crore, while in the debt segment they were the net buyers with a gross purchase of Rs 1623.60 crore against gross sales of Rs 311.60crore.

The US markets gained on Tuesday and the Dow, that has went below the 10000 mark recovered handsomely. The EU initiative to rescue Greece seems to have calmed down some worries across the global markets. The Asian markets have made a good start and barring Hang Seng all the major indices are trading up by about 1 percent. The Indian markets that received a small rally in previous session are likely to continue their momentum with a positive start; more gains can be expected in the later hours of trade.

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

                                                          Nifty Top volumes

• L&T's Construction Division has bagged order aggregating Rs 582 crore from various customers for execution of electrical projects in India and the UAE.
• State Bank of India has said that the merger of State Bank of Indore with itself will be completed by the end of this fiscal.
• Bharti Airtel is going to launch its App Stores on February 10, with over 1,200 applications.
• Cipla has maintained its top position in the domestic market for the 12 months ended December, 2009 with 5.38% market share.
• ONGC and Hungarian oil major MOL is exploring the option of jointly pursuing exploration and production opportunities in third countries.