Indian markets were volatile on Wednesday. After opening positive on cues from Asian peers, Indian stocks slipped into red within couple of minutes on concerns over the fuel price issue. At 10:38 am, Nifty was down 0.44 per cent to 4694 and Nifty June futures was trading at discount of 16 points to the spot.

The government is expected to announce its decision on fuel prices around noon, which is eagerly awaited by the market to assess its effect on inflation, the economy, consumption behavior, and corporate performance.

Nifty June futures price slipped by 0.23 per cent while open interest added 0.89 per cent of positions. Rising open interest coupled with negative cost of carry indicates pessimism in the market.

Nifty calls of strike 4800 and 4900 added some positions in open interest while 5000 call shed positions. In Nifty puts, strikes of 4500-4700 saw build up of positions. This indicates a broad range of 4500-4900.

"Activity above 4740 levels is likely to take indices up to 4770-4800 levels, which will be an exit opportunity. On the downside, 4670-4630 levels may act as support," said a technical analyst at Angel Broking.

In stocks futures, Reliance Industries June was down 1 per cent, Essar Oil slipped 1.12 per cent and open interest shed 1.63 lakh shares. Reliance Petroleum June fell 0.28 per cent and Cairn India dropped 2 per cent. However, ONGC jumped 3 per cent.

Unitech June futures gained 0.5 per cent, DLF fell 1.31 per cent and HDIL skid 1.47 per cent.

Tata Steel June price gained 0.61 per cent and it added 2.7 lakh shares in open interest. Sesa Goa plunged 3.09 per cent and SAIL June fell 0.19 per cent.

JP Associates was trading flat. It shed 1.55 lakh shares in open interest. Larsen & Toubro June price fell 0.67 per cent.