Domestic markets bounced back superbly on Friday, reclaiming the psychological levels that were carted off by volatility in the previous session. The day's gains were unforeseen, given the weakness persisting in global markets and haziness in trade in the first half of the day. However, promising show by the European bourses in opening trades and investors choosing to go for bottom-fishing changed the picture in the market within the blink of an eye and assured a positive close even on a weekly basis. Banking, oil & gas and metal stocks emerged as the star performers of the day. In fact, the early dismal buying tempo mended across all sectors towards the end, with the exception of consumer durables that was left isolated by buyers. Finally, the 30-share BSE Sensex gained 236.20 points or 1.41% to end at 17,021.85, while the S&P CNX Nifty added 63.45 points or 1.27% to settle at 5052.45.

The US markets declined for the third consecutive day on Friday. Though the decline was marginal but the disappointing outlook from the computer major Dell suggested that an economic recovery could not be so near. The other factor affecting the markets was rising dollar, that hit the commodities producers and exporters. The Dow Jones Industrial Average was marginally down by 14.28 points, or 0.14%, to 10,318.16. The broader Standard & Poor's 500 index fell 3.52 points, or 0.32%, to 1,091.38, while the Nasdaq composite index, dominated by tech stocks like Dell, was most hit and lost 10.78 points, or 0.50%, to 2,146.04.

The Crude prices declined for the second consecutive day as the dollar rose and the equity markets continued its decline on economic worries. Natural gas prices too showed receding trend and have dropped by more than 12% in the past month. Benchmark crude also dropped Friday, giving up 81 cents to $76.65 a barrel on the last trading day for the December contract. Crude prices for January delivery lost 65 cents to $77.40. In London, Brent crude for December delivery fell 42 cents to $77.22 on the ICE Futures exchange.

The Indian rupee closed flat on Friday, the currency was trading up during the day as exporter sold dollar amid subdued local stocks. The rupees closed at 46.62/63, 6 paise stronger compared to its Thursday's close of 46.68.The local stock markets made a sharp recovery in the second half and kept the spirit high for the fund inflow.

The FII on Friday were the net sellers in both equity as well as debt segments. In equity segment the gross buying was of Rs 2083.50 crore against gross sell of Rs 2417.80 crore, while in the debt segment the gross purchase was of Rs 323.90 crore with gross sales of Rs 637.90 crore.

The US markets continued its decline on Friday as there still remains the concerns of early recovery with some major companies coming with bleak outlook. The Asian markets have made a mixed kind of start for the week with some indices trading marginally in red. The domestic markets made a smart recovery in the final hours of last trading day, the mood of the foreign investors have been bullish for the Indian market and if the trends continue the liquidity driven rally is likely to persist. The stock to be in limelight today will be Reliance Industries as during the weekend it has announced its bid for the world's third largest chemical company LyondellBasell.

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

                                                             Nifty Top volumes

• Germany-based RE Power, part of Suzlon Energy, has bagged a contract for 18.45 megawatt (MW) wind turbines from Heritage Sustainable Energy LLC, US.
• It has been reported that DLF has started selling land parcels across India to raise funds.
• Bharti Airtel has slipped to third position in terms of monthly additions, according to figures released by Auspi and COAI.
• HCL Technologies has unveiled its Global IT development center in Sao Leopoldo, Brazil.
• Centre, is considering to merge Dena Bank with Canara Bank to make it an entity with expected business of Rs 5 lakh crore.

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