Stocks seen volatile ahead of F&O expiry, inflation

Stocks are likely to remain volatile on Thursday as the September series F&O expiry is underway. Uncertainty about the fate of the US financial sector bailout plan will continue to weigh on sentiment.

Traders will also watch out for inflation data which is scheduled after market hours. The wholesale price index is forecast to have risen 12.23 per cent in the 12 months to Sep 13, above the previous week's rise of 12.14 percent

"For the past two sessions, the Nifty held above the support at 4110 points. The Bears need to break it for further down swing with support at 4040-4070 points. Pivot is pegged at 4173 points which needs to be sustained for the Nifty to move to 4215 points. Expect markets to consolidate before a fresh breakout on event of range expansion. Trade in small quantities,"