Market Watch: Sensex gains strength as Europe opens higher

Equities pulled back from lower levels Tuesday following a positive opening of European Markets. Realty, auto and banks were in demand on expectations of a second stimulus package and hopes of announcement of another rate cut by the Reserve Bank of India.

Volatility can be the order of the day; an intra-day upside (seems like a possibility) could come in above the 2923 level while significant resistance at higher levels (3040) - would limit the upside. The outlook has turned negative again while resistance comes in at the above 3100 and support comes in at 2250.

European markets extended overnight gains Tuesday following rise in shares of oil and banking stocks. FTSE 100 was up 0.82 per cent, DAX 30 surged 1.35 per cent and CAC 40 moved up 0.95 per cent.