Experts feel markets could rally from current levels. "We expect an upward rally from the current level. Key support is at 6000. However, the current pullback rally may face resistance at 6120. 200DEMA support is at 6000. However, Nifty may trade within a range of 6000 6150 in near term," Standard Chartered said in a note.
Recently appointed US Fed chairperson Janet Yellen on Tuesday said that she expects US economys recovery to continue and the central bank would pullback its stimulus package in a measured manner, allaying concerns of global growth. The Dow Jones Industrial Average closed 1.22% higher on Tuesday, while the NASDAQ Composite closed 1.03% higher.
All Asian indices ended in the green. The Nikkei (0.56%), Hang Seng (1.47%), KOSPI (0.20%), Straits Times (0.21%), Jakarta Composite (0.46%) and Shanghai Composite (0.30%) ended higher with positive Chinese trade data adding to the optimism.
Chinese exports beat expectations in January, rising 10.6% from a year earlier, while imports jumped 10%, leaving the country with a trade surplus of $31.9 billion for January.
"Asian shares rallied as risk appetites were whetted by an optimistic economic outlook from Federal Reserve Chair Janet Yellen, which diminished the need for safe havens such as the yen and bonds," the note added.
Back home, Indias trade deficit narrowed in January to $9.92 billion from $10.14 billion in December. Among sectoral indices, BSE Bankex ended 0.95% higher, BSE Capital Goods (1.51%), BSE Oil & Gas (1.27%) were the major gainers. Among individual stocks, ICICI Bank (3.11%), GAIL (2.57%) and Oil & Natural Gas Corp (ONGC) (2.50%) were the major gainers.
Shares of Tata Steel ended 4.05% lower after the steelmaker reported net profit of Rs 503 crore which was below street estimates. Shares of Crompton Greaves ended 5.46% higher as Standard Chartered upgraded the stock to 'outperform' from 'underperform'.