A morning walk down Dalal Street | Bears likely to remain in control as long as Nifty trades below 11,000

A weak day for Indian markets. The S&P BSE Sensex breached its support placed at 36,000 while Nifty50 slipped below 10,900 but found support above 10,850 levels.

RBI’s refusal to open a special window for oil marketing companies (OMCs) affected market sentiments. The rupee touched a new low of Rs 73.40 to a dollar.

Technically speaking, the Nifty50 is now trading below crucial short-term moving averages. The next crucial support is placed at its 200-SMA placed at 10,777. A breach of which could see Nifty50 heading towards 10,700 levels and worse 10,557.

In forthcoming sessions, if Nifty50 doesn’t stabilise around its 200-Day EMA of 10,785 levels then traders investors should prepare themselves to see the index heading towards 10,557 levels.

On the upsides, bulls will able to revive their chances of coming back provided they manage a close above psychologically important level of 11,000. Till then bears are likely to remain in control.