Podcast | A morning walk down Dalal Street: Breach of 10,557 should lead to further decline

The Nifty which started on a flat note with a slight positive bias on Thursday failed to build on the momentum and closed below its psychological support level of 10,750.

The index made a snapped its 2-day winning streak and closed marginally in red. The index made a bearish candle which resembles a Bearish Belt Hold kind of pattern on the daily charts. It took support at its 13-EMA placed around 10,727 before bouncing back towards 10,750. 

The Nifty formed a bearish candle which also resembles a Bearish Belt Hold kind of candle on the daily chart.

A medium-term falling trend-line & upper end of a possible distribution triangle i.e. 10,800-10,860 shall be the key hurdle zone to watch out for. 

On the downside, breach of the support zone of 10,604-10,557 shall lead to a larger decline.