Chasing momentum is not always a good idea, however good the macros maybe. There will be a slight gap up around 10,030 levels and that is the resistance level. 10,050 offers another stiff resistance and with two big resistances around NIFTY has to negotiate a lot to cross these levels. Dont be surprised if there is some selling as soon as NIFTY reaches any of the above levels. On the downside 9970 offers a strong support and NIFTY might test that level if there is excessive selling. There is a strong activity in the options market where there is heavy put selling at 10,000 level. There is a call buying happening at 10,200 level also and that is the only indication that NIFTY might close flat today around the 10,000 level. So its a day where NIFTY has to negotiate some strong technicals and the story is how it negotiates that.

On the macro front

Korean fears are behind, Hurricane Irma was not as destructive as expected so its acting positive. The IIP and CPI numbers are expected today evening and that’s a fundamental to watch out for. CPI is expected to come at 3.2% and IIP at a 1.3% which is a very low number. So not much is expected till RBI gathers some courage to cut the rates on 4th October when it comes out with its next credit policy!