Markets remain volatile in a narrow range

Benchmark indices remain volatile in a narrow range with Sensex and Nifty swinging between negative and positive zone.

At 1300 hrs, the Sensex was down 33 at 20,392 and the Nifty slipped by 16 points to trade at 6,043 levels.

Market will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month November to December and July-September GDP data on Friday.

Adds Devangshu Datta, Technical Analyst, “Nifty has resistance at 6075-6080 %u2013 use this as day trading stop loss for shorts. If it drops below support at 6025 it could fall much further %u2013 use 6025 as stop loss for long positions.”

On the global front, the euro reached fresh highs on both the yen and US dollar on Wednesday, while Shanghai stocks shrugged off geopolitical concerns to outpace an otherwise lacklustre regional performance.

The single currency touched a four-year peak against the yen and a one-month high on the dollar as speculators wrestled with major chart resistance at 138.00 yen and $1.3600. A break here would likely open the way to further gains for euro bulls.

While most share markets were subdued after a flat finish on Wall Street, China's CSI300 of leading Shanghai and Shenzhen A-shares stood out with a 1.0% gain.

Back home, the rupee was trading marginally strong in morning trade due to dollar sale by banks. At 13:00 PM, the rupee was trading at Rs 62.26 compared with previous close of Rs 62.50 per dollar.

On the sectoral front, BSE Realty, Healthcare, Power, TECk and IT indices have dropped by 1% each. BSE Consumer Durables, Auto and FMCG indices have gained by nearly 1% each.

The main losers on the Sensex at this hour include Bharti Airtel, Sesa Sterlite, Sun Pharma, BHEL and Wipro, all declining between 1-2%.

On the losing side, ONGC, ITC, Tata Motors, Bajaj Auto and Coal India have slipped between 1-2%.

Among other shares, Edelweiss Financial Services surged 5.7% to Rs 26.70 after the company announced hiking the FII holding limit to 28% from 24%.

Wockhardt has plunged nearly 14% to Rs 406 on media reports that the U S Food and Drug Administration (US FDA) issued an import alert for the drug maker's Chikalthana facility at Aurangabad.

The market breadth in BSE remains weak with 1,222 shares declining and 927 shares advancing.