Pre-market: Gap up opening seen

Markets are likely to extend Monday's rally on the  back of global cues. Overnight, US stocks rebounded from seven days
of losses on Monday as investors used the latest effort from European leaders to resolve the region's debt crisis as an opportunity to cover short positions.

The Dow Jones industrial average was up 291.23 points, or 2.59 per cent, at 11,523.01. The Standard & Poor's 500 Index was up 33.88 points, or 2.92 per cent, at 1,192.55. In Asia, markets rose on hopes of more drastic steps to deal with the euro zone debt crisis and a robust start to the U.S. holiday shopping season boosted global stocks.  Japan's benchmark Nikkei average opened up 1.01 per cent at 8,371.01 on Tuesday, while Seoul Composite and Shanghai Composite advanced nearly 1% each. The SGX Nifty is trading flat at 4,869.

On Monday, markets extended gains in late noon trades on sustained buying in metal and realty shares. The Sensex, ended with a gain of 472 points, or 3%, at 16,167. Nifty ended up 141 points at 4,851.

"Rally on index is purely a technical bounce on oversold charts; whereas resistance is expected at around 5010 levels," said technical analyst, Ravi Natahni.

PSU stocks like Coal India, ONGC and SAIL would be in limelight on reports that the Department of Disinvestment has circulated a cabinet note to seek the opinion of the concerned ministries. Markt heavyweight, Reliance, may be on the buzzer today after slapping Oil Ministry with an arbitration notice saying the move to disallow a part of its investment in India's largest gas field is illegal and violation of signed contract.