The Sensex ended down 146 points at 15,728.
Nifty ended down 45 points at 4,705.
Markets are likely to remain volatile tomorrow as traders roll over their positions ahead of the futures & options expiry.
Foreign Institutional Investors bought shares worth Rs 214.31 crore on Tuesday as per provisional data from the stock exchanges.
Markets will be looking at the next batch of corporate earnings, which starts in January, for direction.
Speaking about the rollover positions till now, Shshank Mehta, Derivatives Strategist, Shah Investor's Home said, "We observe below average rollovers this expiry relative to earlier expiries.
"However, December month generally observes anomally due to the year-end NAV buying sentiment.
"I can comment on some the T-3 and T-2 above average rolleovers; however, it would be prudent to form a view or take trading positions only actual rollovers on expiry.
"For example, we formed bias in Reliance and observed long rolls in T-3 and T-2 positions and we would have come to that conclusion if would have traded and settled above 773 (settlement at Nov'11 expiry).
"However, with a fall in the market today and correspoding change in derivatives data points we believe Nifty and heavy weight stocks such as Reliance may drift lower changing our opnion.
Bottomline is reading into T-3/-2/-1 tolovers is important as it increases our convistion. But final judgement should be placed only on actual rolls on expiry".
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