Indian markets were off early morning lows as investors bought stocks across the board available at cheaper valuations even as the Asian peers continued to reel under pressure following financial crisis in the US and Europre.

According to analysts, the market seems to be bottoming out and investors should start cherry-picking at current levels and dips should be used as a buying opportunity. Decline in global crude and commodities prices is likely to benefit Indian economy as it will help in easing stubborn inflation levels.

Benchmarks have been showing some resilience by bouncing back from intraday lows in the past few sessions before succumbing to global pressure.

At 10:17 am; National Stock Exchange's Nifty was at 5032.75, down 85.75 points or 1.68 per cent. The broader index touched a high of 5045.05 and low of 4946.45 in trade so far.

Bombay Stock Exchange's Sensex was at 16688.10, down 302.08 points or 1.78 per cent. The 30-share index touched intraday low of 16432 and high of 16742.15

"The sell-off continues as renewed selling in Dow and European markets sent bulls running for cover. The intermediate trend looks bearish but strong support for Nifty future seen at 5055 - 5011 levels and unless we see a breakdown and close below 4990 - 4960, any decline should be used as a buying opportunity.

On the higher side Nifty future will face resistance at 5140-5190 levels and stability above this point might provide a big rally up to 5330 - 5370 levels in the near term. On a weekly chart, support for Nifty future seen at 4850 if breaks 4990 on the closing basis.

For Sensex @ 16990, strong support exits at 16630 - 16440 where investment buying is sensible and resistance seen at 17200," said Nirmal Bang report.

BSE Midcap Index was down 1.49 per cent and BSE Smallcap Index fell 1.93 per cent.

Amongst sectoral indices, BSE IT Index plunged 3.68 per cent, BSE Metal Index fell 2.39 per cent and BSE Healthcare Index declined 2.36 per cent.

Reliance Infrastructure (-4.42%), Reliance Power (-4.41%), TCS (-4.33%), Sun Pharma (-4.02%) and Reliance Capital (-3.94%) were amongst the top Nifty losers.

Gainers included M&M (1.20%), Ambuja Cements (1.20%), Bajaj Auto (1.01%), ONGC (0.88%) and Siemens (0.73%).

Market breadth was negative on the NSE with 2500 losers against 744 gainers.

Meanwhile, the Asian peers were continued to remain under selling presssure. Hang Seng plunged 6.01 per cent, Nikkei 225 fell 3.51 per cent and Seoul Composite fell 6.05 per cent.