Eoin Treacy's view The Indian stock market's decline has been exacerbated by a perception that the authorities' handling of resurgent inflationary pressures has been inept. The Nifty Index lost momentum from October, posted a failed upside break in November, a lower rally high in early January and fell rather abruptly over the last six weeks. It is oversold in the short-term and posted an impressive upside key reversal on Friday. It followed through to the upside today. The short-term progression of lower rally highs remains intact but this is the largest two-day rally in quite some time and has at least checked the downtrend. A sustained move below 5200 is now required to question potential for some additional upside.

I opened a spread-bet long in the JPMorgan India Trust, paying 427.46p for a June contract including spread-bet dealing costs.