Nifty seems to be struggling at 11700 because it is an important swing high. Global markets haven’t been supportive while the domestic cues are pointing to volatility. The earnings are yet to come from some of the heavyweights like SBI, Maruti as well. So the market is actually seen oscillating between a range of 11700 – 11500. With that, we have seen Infy weighing on the Index as it fell almost 15%. A rebound today helped the index to sustain the lower levels.
This is a very important level for Nifty and important in the sense as it will give us a short term view for the next few weeks. Above 11700 we don’t see any resistance till 12000 or previous all-time high and if we are not able to take out 11700 the bears may take advantage of a low-risk opportunity. So this is going to be a tug of war and whoever wins at this point may be controlling the index for the next few weeks. We have been cautious previously since the risk-reward at this point is not in favor as we need a close above 11700 to justify the previous gains and a bullish move ahead. So We do recommend buy but on a closing basis above 11700 and by that time it is better to be on the sideline.