Key benchmark indices managed to snap the three-day losing streak with modest gains on Tuesday prompted by the strong global cues. Local markets were in buoyant mood throughout the day on the back of good buying in metal stocks from investors tracking firm global metal prices. Public sector undertaking, realty and banking sector stocks were the other growth drivers for the markets in trade. On the other hand, information technology and healthcare stocks took some beating from the bears. Though most of the sectoral indices on the BSE notched up notable gains in trade, market participants remained cautious and avoided heavy buying at higher levels ahead of the holiday season. Strong growth of 20% in advance tax collections from the corporates also boosted market sentiment in the day's trade. The broader indices outperformed the benchmarks on strong demand from marketmen for second line stocks. Finally, the BSE Sensex added 90.80 points or 0.55% to settle at 16,692, while the S&P CNX Nifty gained 33.25 points or 0.67% to end at 4985.85.

The US markets closed higher for the third day on Tuesday on the back of surprisingly strong report on housing giving an indication that the economy is on recovery path.Though, the gain were capped off on the report that US economy grew with slower pace in third quarter, the US economy grew 2.2% in the third quarter of 2009, much less than projected 2.8%. Two of the major indices, S&P 500 and the Nasdaq are now at their highest levels since last October. The Dow Jones industrial average rose by 50.79 points, or 0.5%, to 10,464.93. The Standard & Poor's 500 index was up by 3.97 points, or 0.4%, to 1,118.02, while the Nasdaq composite index closed higher by 15.01points, or 0.7%, to 2,252.67.

Crude prices settled higher on Tuesday after the world's biggest oil producing nations (OPEC) opted to leave production volumes unchanged, a decision that could lead to short-term stability for energy prices after a volatile year. The other support came from an industry group reported crude inventories fell more than expected last week. Benchmark crude for February delivery rose 68 cents to settle at $74.40 on the New York Mercantile Exchange. In London, Brent crude for February delivery rose 47 cents to settle at $73.46 on the ICE Futures exchange.

The Indian rupee closed flat on Tuesday with a positive bias, the rupee started flat despite good equity market cues as the dollar advanced against Yen and Euro overseas. The other hurdle that prevented a rise in the domestic currency was the dollar demand from the oil refiners as they are the largest buyers of dollars in the local market to fulfill their month end demand. Finally the rupees closed at 46.80/81, 4 paise higher compared to its Monday's close of 46.84/85.

The FII on Tuesday were the net sellers in the equity segment with gross buying of Rs 1837.40 crore against gross sell of Rs 2095.70 crore, while in the debt segment they were the net buyers with a gross purchase of Rs 44.40 with no selling reported at all.

The US markets managed a positive close on Tuesday on the back of surprisingly strong report on housing though the GDP numbers were not encouraging but the major indices managed a good close. The Asian markets have made a mixed start and the Chinese market is continuing its decline while the others are showing marginal gains. The domestic markets  closed with modest gains in previous trading but the global cues are indicating a cautious start for the markets and the trade is likely to remain range bound.

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

                                                          Nifty Top volumes

• Unitech Wireless has started mobile telephony services in Orissa, taking the total number of its service areas operational to eight.
• Bharti Airtel's auditors have sought extension from the government by one-and- a-half months to submit the report.
• Tata Steel's managing director H M Nerurkar has indicated that the company may go for price hike in next year.
• Maruti Suzuki is going to introduce a new family car 'Eco' with a 1,200cc petrol engine under Rs 4 lakh segment, at the forthcoming Auto Expo in Delhi.
• Pawan Munjal of Hero Honda and the Sahara group are looking at bidding for new Indian Premier League (IPL) teams.