“Today, despite having muted cues from the global peers, our markets started the session on a positive note. This was mainly on the back of a strong opening from the IT giant Infosys, post its buyback announcement. However, despite this, there was no other trigger for such strong opening and hence, we got to see a perfect instance of how index balancing is done. The banking index remained under pressure throughout the day to compensate Infy’s strong move. As a result, the Nifty eventually pared down all losses during the day to end the session on a flat note.
In our earlier article, we had mentioned a strong resistance zone of 9900 – 9940 and if we look at today’s high, the higher end of 9940 has certainly proved its significance. Going forward, we continue to expect a strong selling pressure around this mentioned hurdle and hence, traders are advised not to create fresh longs at current levels. On the downside, 9830 – 9773remains to be important support levels for the index.”