India's benchmark stock indices Sensex and Nifty bounced back by more than 1 per cent in Tuesday's trading sessions after an over 3 per cent fall on Monday. Sensex rose by 452 points or 1 per cent to close at 46,006. The Nifty index gained 137 points or 1.03 per cent at 13,466 points.

After Monday's sharp fall stock market traders were expecting the markets to witness a further severe crash as news reports suggested a new mutating virus in the UK had gone out of control.

The stock markets in Europe and Asia were trading higher after a stronger than expected closing of the US markets on Monday. Also, news reports suggested on Tuesday that the UK's economy grew by a record 16 per cent in the third quarter post the Covid lock down in March. The Dow Jones index closed positively in the US while other benchmarks the S&P and Nasdaq were down by less than 0.4 per cent. This was a better than expected closing since markets in Asia and Europe had declined between 2 to 3 per cent.

"For the time being, the markets are directionless. Monday's fall has made traders nervous, and since the volatility is high, the stop losses will be large too. Therefore, it is advised to wait and watch for a few days, till a clear direction emerges on the up or down for the indices. For Nifty 13,100-13,150 is medium-term support and if that were to break, we could slide down to 12,800," said Manish Hathiramani, Technical Analyst, Deen Dayal Investments.

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