Nifty touched a 3-month low of 10637. Positive divergence on the RSI has been seen following rollback of taxes on the FPIs. RSI has risen while Nifty has formed lower lows on the charts. Nifty on the weekly scale formed a low top and lower bottom formation and therefore extreme caution is advised while playing long especially news flows coming by. 10,500 is a significant level on the lower side. 11200 is the 200 DMA followed by 11350 which forms a retracement level. One can look for sideways range between 11500-11200.

Heavyweights like HDFC, HDFC Bank and Reliance Industries could remain under pressure going ahead. Sectors to watch out for would be IT which should technically do well including the likes of TCS and Infosys, making new 52-week highs.

Metals would remain under pressure especially weakness coming through from the international markets, said Pushkaraj Kanitkar, AVP - Technical Research at GEPL Capital.