The Sensex and Nifty were volatile on Tuesday, with the session being marked by extreme swings, as investors geared up for the upcoming March-quarter results beginning later this week.
Shares reversed Monday's lows in the first hour of trade before turning negative. Gains in IT stocks were offset by losses in the financial sector.
An analyst expects this volatility to continue till the outcome of national election is known, following which the markets could see a correction.
"Traders need to adjust their style of trading in this volatile market. One should look at putting in 1/3rd of their daily volumes to compensate for daily fluctuations," said Rudramurthy B.V., managing director and research head at Vachana Investments.
"Markets will trade in a range of 11,350 and 11,850 on nifty futures till the election results are declared but even in this range, we can expect high volatility on a daily basis and one shouldn't wait long to book profits."
Domestic shares also tracked broader Asian markets which were weighed by cautious sentiment ahead of the U.S. earnings season and a crucial Brexit summit.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.31 percent.
The broader NSE index was down 0.18 percent at 11,584.15 as of 0624 GMT, while the benchmark BSE index was 0.14 percent lower at 38,646.94.
HCL Technologies rose nearly 3 percent after Nomura said strong deal wins could propel growth for FY20. Wipro climbed up 2.7 percent.
"FII inflows from the past couple of months were added to financials and NBFCs and now it'll move to IT and pharma sector. This will be followed by investment in quality mid-cap stocks," Rudramurthy added.
Shares of state-run telecom equipment manufacturer ITI Ltd rose as much as 9.4 percent after reporting a 20 percent increase in FY19 turnover.
Among the decliners, Indiabulls Housing Finance dropped 3 percent, while State Bank of India was trading one percent lower.
Asian Paints fell 3.4 percent after CLSA Research downgraded stock to 'sell' from 'outperform' citing near-term concerns on demand against a high expectation from the stock.