The Indian markets on Wednesday opened with a gap up boosted by strong global cues. US stocks rallied on Tuesday after Lehman Brothers  said it raised $4bn in an offering of convertible preferred shares, which soothed fears it was heading for a fate similar to that of Bear Stearns. However, an early surge on the bourses proved short-lived as index heavyweights gave up initial gains. Heavy FII selling coupled with rising economic concerns weighed down on the benchmark indices, which finally ended the day with only marginal gains. While the BSE Midcap index ended the day in green, the BSE Smallcap index closed higher by 1%. Among the frontliners, Satyam Computers, Jaiprakash Asscociates, ICICI Bank Limited, Infosys and HDFC gained 2.5-5%, while HUL, ITC, BHEL, Tata Steel and Reliance Energy lost ground by 1-4.5%.In the Mid-cap segment, Essar Shipping, Spice Telecom, Sundaram Clayton, Shaw Wallace and Akruti City gained 9.5-19.5%, whereas Advanta, Ansal Infrastructure, HT Media, Motherson Sumi System and Ahluwalia Company lost 5-10.5%.

The trend deciding level for the day is 4804 / 15902. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally upto 4867 – 4979 / 16085 - 16419. However, if NIFTY trades below 4804 / 15902 for the first half-an-hour of trade then it may correct upto 4691 – 4629 / 15568 - 15385. Read More

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