New Delhi, Nov 8 (IANS): The tug of war between the FIIs and DIIs continues with sustained selling by the FIIs and sustained buying by the DIIs, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Since the buy on dips strategy is working, retail investors are buying in the broader market on every dip. There is no selling pressure in the broader market since FII selling is confined to large-caps, he said.

The best opportunity for long-term investors is in high quality large-caps since these stocks will do well when FIIs eventually turn buyers, he added.

There are three significant trends in equity markets now: One, global markets are stable as indicated by the 7-day winning streak in Dow and S&P 500. Two, a risk on is evident in markets primarily driven by the sharp correction in the US 10-year bond yield from the recent high of 5 per cent to 4.57 per cent now. Three, the crash in Brent crude from around $94 to below $82 now indicates that the market doesn’t expect the Israel-Gaza conflict to aggravate into a wider regional conflict. The market construct is favourable for the continuation of the rally despite the geopolitical uncertainties, he added.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said Nifty after opening on a flat note remained rangebound throughout the session hovering near the 19,350 - 19,400 zone with bias maintained positive anticipating for further rise till 19,550 levels. The levels near 19,200-19,250 would act as the support zone from current levels which needs to be sustained. The support for the day is seen at 19,300, while the resistance is seen at 19,550.

BSE Sensex is down 20 points at 64,922 points on Wednesday. Asian Paints is up 1 per cent.