Panic selling is coming from FII as they are losing more than domestic investors, if this continues we will see more downside from current levels. Most of the FII track their asset in terms of USD and strength is USD across globe is creating extreme pressure in our economy, FII are now liquidating their positions and buying USD to take the advantage of strong USD. If you compare nifty future with NSE’s Defty you will notice NSE’s Defty is losing more than nifty future, this is due to weak Indian rupee vs US dollar. Recently USD index was seen above 80, this increased the demand for USD related assets as supply was very limited this created weakness in other currencies including INR (Indian Rupee). Nifty future has lost about 1900 points or 30%, while NSE’s Defty was losing much more it lost 2000 points or 40% which is quite higher when compared from its high to low in monthly chart. Even today we have seen nifty future making fresh low; NSE’s defty has already made a new low few days back.