Market analyst Rajat Bose says Nifty has strong support at 8,127 and if 8000 levels are breached, it could slide to 7,800 levels.
Traders would also be keeping a watch on the rupee in view of dollar hitting a nine-year high against the euro. The rupee was higher at 63.50 against Tuesday's close of 63.57.
At 9:50 am, the Sensex was almost flat at 26,990 while Nifty edged up by 7 points to 8,134. Sensex fell 854 points on Tuesday as a tumble in oil prices roiled global markets.
Buying was seen in select oil & gas stocks today after they saw a big selloff on Tuesday amid a tumble in oil prices. Market heavyweight RIL rose 1.5 per cent after slumping 4.5 per cent in the previous session.
IT stocks also attracted some buying with TCS and Tech Mahindra rising nearly 1 per cent. Among major Nifty losers, Cairn India fell over 2 per cent while ICICI Bank, Tata Motors and BHEL were down nearly 1.5 per cent.
Asian markets recovered today as investors' appetite for risk returned, despite a fall in Wall Street shares driven by global economic worries and slumping oil prices. Japan's Nikkei benchmark added 0.4 per cent to 16,945.43.
Oil prices remained near five-and-a-half year lows in early Asian trading on Wednesday after prices saw yet more heavy falls in the previous session, and analysts said a supply glut meant that more falls were likely before a rebound. (With Agency Inputs)