US stocks rallied on Tuesday closing higher in a major comeback from the biggest three-day drop since September 30. Dow gained 1.6%, S&P rose 1.78% while the Nasdaq Composite gained 2.4%. Small cap Russell 2000 gained the most adding 2.96% to overnight close.
US dollar index closed marginally down near 96.48, Cboe Vix closed at 21 (still at elevated levels), 10 year moved higher near 1.45%.
Crude futures moved sharply higher on risk-on trade, Brent moved above 74, WTI above 71.
IT and Metal stocks helped Indian markets to recover some lost ground on Tuesday. Stocks remained choppy during the end of session halving the opening gains due to weakness in BFSI names. Small and Mid cap names also saw some recovery from deeply oversold zone.
*For the day watch for some opening gains on global equity sentiments. Traders may continue using options till Nifty takes out 16900 - 16950 zone and sets a history above the same. Though the trade set-up remains positive for the day the traded volumes may continue to decline due to lesser participation by FII / FI during the holiday season thereby resulting in high volatility.*
Tg @AlliesFin
By: via @AlliesFin Serve Stock Market
