According to dealers, as fund buying emerged at lower levels - after the Sensex touched its intra-day low of 3912 - mainly from UTI, short sellers ran for cover, which further lifted the scrip prices. However, there is not much upside from the current level, say dealers. ``We don't see the Sensex crossing the 4400-level in this rally,'' said a dealer with a local brokerage.

For Tuesday, ``The markets might open on a better note, but it will be difficult to sustain the higher levels,'' said a BSE broker. Although fund- buying on Monday was substantial compared to the last few days, market players say that the Morgan Stanley's recent steps to revise downward the India weight in its quarterly index may hamper new fund inflow. According to FII investment data published by Sebi on Monday, on Friday, there was net FII investment outflow worth Rs 308.5 crore.

On Monday, for the first time in the last 11 months, the Sensex dipped below the 4000-mark. Stocks opened weak, and immediately came under strong selling pressure. As a result, a large number of software stocks dipped to their 8 per cent lower limit in the first half an hour. However, recovery set in at around 11 am, and continued for the remaining part of the day.

Stocks like ITC, HLL, Satyam Comp, ZEE Tele and Infosys helped the Sensex to show a recovery from the low levels. Mirroring the sentiment, the BSE sensitive index opened at 4024.66 points, and dipped to a low of 3912.95 points. It recovered to a peak of 4249.45 points, and closed at 4214.45 points.

Similarly, the Nifty gained 15 points and closed at 1297.85 points. The low for the day was 1220.70 points whereas the high for the day was 1311.70 points.

Meanwhile, trading volume remained comparatively high. It stood at Rs 2943 crore on the BSE, and the same figure on the NSE stood at Rs 3861 crore. Meanwhile, advances stood at 599, and the number of declines was at 698. Around 109 stocks remained unchanged.

Meanwhile, stocks which gained more than 7.9 per cent were: Silverline, Zee, Dig Equipment, Sterlite, HCL Techno, Padmini Poly, Essel Packging, TV 18, Wartsila, MP Tele, Amtek Auto, Snowcem, Atco, Vakrangee.

Other gainers for the day were Satyam Comp, ITC, NIIT, IPCL, M&M, Cadila Health, Crompton Greaves, Jaiprakash, Mastek, Nath Seeds, Denim Enterprise, EIH, Cinerad Com.

At the same time, stocks which dipped more than 7.9 per cent were: Cinevista, Philips, Smithkline Pharma, Goldstone Techno, Fujitsu, ICI India, Tata Info, Melstar Info, Gramophone, Amex Info, Orchid Chem, Catvision, SKF Bearings.

Other losers for the day include HFCL, DSQ Soft, VSNL, Bharat Forge, Advent Comp, VJIL, Max India, ITI, Nirma, Valiant Com, Cybertech, Vikas WSP, Zicom Elec, Birla Eri, Madura Coates, Monalisa, Aplab, Heritage Foods.