Nifty on recovery mode, here's what can save an oversold mkt

11:30 Post the steep crash yesterday, the markets seem to be on recovery mode today as both the Sensex and the Nifty are up more than a percent. The Sensex is up 189 points to 16,218, trading close to its intraday high and up 114 points from the day’s low. The Nifty is also trading 12 points above the 4,900 level. The market breadth is strong. On the NSE, 1013 stocks have advanced while 319 have declined.

The rupee, which played havoc yesterday and closed at an alltime low of 54.5, has risen and is trading at Rs 54.32.

Among sectoral indices, FMCG leads gains with a 2.7 percent jump today. All the FMCG stocks are trading higher with the exception of Jubiliant Food. ITC has jumped 3.65 percent to Rs 235.6 per share followed by United Breweries, Godrej Cons.

In the 30-share Sensex pack, 25 are in the green. DLF, Jindal Steel, HDFC are up 2-3 percent in trade today. Tata Motors, which had fallen by 7 percent yesterday is up 1.7 percent today.

While the Indian markets are grappling with the bulls, Vibhav Kapoor of IL&FS says that falling crude and commodity price may prove to be a blessing in disguise and that the the depreciation in rupee may actually be positive for India, as it may help in adjustment of the current account deficit. “Falling oil prices while they are not benefiting the fiscal deficit because of the depreciation of the rupee but they are definitely going to help in the current account deficit,” he told _CNBC-TV18 i_n an interview.

Amit Gupta, head- derivatives of ICICI Direct says that there could be a little bit of pullback immediately. " For intraday traders, 4,950 is going to be critical immediately. A close above that possibly may give you an indication that finally we are going to hit 5,050" he added.

However, Standard Chartered does not see any positive break out in the market till the macro environment improves. “Weak IIP and higher inflation weighed on market sentiment, and the market is likely to recover once domestic factors improve,“Dhiraj Agarwal of Standard Chartered Securities told CNBC-TV18. In this environment, Agarwal says consumer names could continue to enjoy premium valuations. “This is because the market is willing to ascribe premium for consistent growth,” he explained.

Stock specific news :

Shares of oil companies are trading higher after reports that petrol and diesel prices will rise after the Parliaments budget sessions ends of May 22, as per Reuters. HPCL and BPCL were up 2-3 percent.

RIL is trading up 1.9 percent to Rs 688.7 per share.

Divi’s Lab hit a 52-week high on the bourse today to Rs 910.9 per share on the NSE.

IPCA Laboratories gained 2 percent to Rs 354 after the company said its board of directors has fixed 31 May 2012 as the record date for entitlement of shares of the company to the shareholders of Tonira Pharma.

Among other scrips that are up today include Dish Tv (7.7%), MNDC (5%) while the losers are Pantaloon Retail (-4.8%), Cummins India (-4%).