Mustafa Nadeem, CEO, Epic Research: Nifty seems to be struggling at 11,700 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 the range of 11,700-11,500. With that, we have seen Infosys weighing on the Index as it fell almost 15 percent. A rebound today helped the index to sustain the lower levels.
This is a very important level for Nifty in the sense it will give us a short-term view for the next few weeks. Above 11,700, we don't see any resistance till 12,000 or the previous all-time high, and if we are not able to take out 11,700 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 favour as we need a close above 11,700 to justify the previous gains and a bullish move ahead. So, We do recommend a buy but on a closing basis above 11,700 and by that time, it is better to be on the sideline.