The US 10-year bond yield climbing to a 10-month high of 4.54 per cent and the dollar index spiking to 105.94 are headwinds for the market and this is getting reflected in the sustained FII selling which has taken the net FII sell figure in September so far to Rs 20,593 crore, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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The buying by DIIs, at Rs 13,748 crore, is supporting the market but is not strong enough to give confidence to the bulls. It remains to be seen how this tug of war plays out in the near term, he added.

On the positive side, the strength of the Indian economy, good corporate earnings trend and flows into the mutual funds, particularly SIPs, are supportive indicators. But the bulls are on the back foot since negative global cues are indicating caution, he said.

Meanwhile, long-term investors can utilise the weakness in the market as an opportunity to buy high quality stocks in financials, capital goods and autos ignoring the near-term volatility in the market, he added.

BSE Sensex was down 32 points at 65,990 points on Tuesday. Tata Steel is up 1.8 per cent.