15,700 – 15,670 level remains the crux

Volatility continues with the market dancing around a big green candle leaving a large void in today's open and keeping investors and short-term traders puzzled.

The big green pullback instilled a lot of confidence and is taken away with the kind of open we have seen today that was much lower and further a follow-through selling throughout the day.

A classic trap that is hard to avoid or a risk that no one can trim out. Though, the stronghold of 15,700 – 15,670 remains the crux of this ongoing battle between bulls and bears and the cause of heightened volatility.

Vix too is up 10 per cent and we believe it can further elevate making it all erratic. Non-energy minerals and process industries have been able to sustain the current bearish move and seem to have witnessed a short-term inflow but that is again in select stocks.

(The author is Technical Analyst at Finversify and is a CMT, CFTe)