Nifty 9,700 a key support level to watch

The index moved North in late December 2016 from 7,900 levels

The index hit new highs and climbed past 9,800 intra-day though it failed to hold onto those levels. The initial trader response to goods and services tax (GST) has been favourable. Institutional attitude is interesting. The Foreign portfolio investors (FPIs) have been net sellers of a modest Rs 127 crore (up to July 11) but domestic institutional investors have bought over Rs 3,500 crore. The market has been low-volume so this has been enough to trigger a breakout.
 
By definition, the long-term trend must be counted positive. But, two factors must be considered. For one, there was substantial selling