Equity benchmarks failed to hold on to the green for yet another day amid volatile trade on Dalal Street. Losses in IT and FMCG shares pulled the headline indices lower, though gains in financial and oil and gas scrips limited the downside.
The market is falling almost like a script post 2 pm every day. The dollar index is soft but Brent crude prices are higher. FII selling continues unabated especially in the last hour.
However, right now the market is in a very large 600 point band and within that, it is very volatile. It is not breaking the recent low of 15,800 and it is not able to take out the 20-day moving average (DMA) on the upside around 16,400 – that is where the resistance is.
The Street expects some volatility in the market today and tomorrow on the back of the monthly expiry tomorrow. IT index is the weakest index right now in the market and banks have been resilient. This month, the Bank Nifty is down 5 percent and the IT index is down 10 percent.
For now, SGX Nifty is indicating that the market will have a positive start today.
Watch the accompanying video of CNBC-TV18’s Anuj Singhal for more details.