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 FIIs, who have sold for Rs 21,640 crore in the cash market in September so far, are likely to sell more, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Even though the market is showing resilience, the undercurrent is weak, he said, adding that the dollar index at 106.59, the US 10-year bond yield at 4.62 per cent and Brent crude above $97 are strong headwinds that can pull the market down.

Investors have to be cautious at this stage. Profit booking in the mid-and small-cap stocks which have shot up on hope and aggressive buying would be a good strategy. There is safety in large-caps, particularly in segments like banking/financials, capital goods and autos, he added.

Anand James, Chief Market Strategist at Geojit Financial Services said despite extremely gloomy opening moves, an outright collapse was avoided as expected, with 19,550 attracting enough buying interest to raise hopes towards a reversal from the 20,200-19,550 down move that has been in play since September 18 .

However, that the upmove stalled at the first level of significance, at 19,727-43, refrains us from an all out buy. We will however be encouraged to aim for 19,780-880 as long as declines do not stretch beyond 19,678-19,654, he said.

BSE Sensex is down 76 points at 66042 points on Thursday. Tech Mahindra is the top loser down more than 3 per cent.