Stock Market

NEW DELHI: The Nifty50 faced selling pressure above the 11,000 level on Monday, but rebounded from a critical support level to suggest that the bulls were in no mood to give in.The index made a formation similar to the 'Bearish Belt Hold' pattern on the daily chart.During the session, the index filled the gap area between 10,976 and 10,999 levels.
Nevertheless, it found support near the May high of 10,929, which acted as a support as per the principles of role reversal, said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan.The 10,850-10,800 range is a crucial support for the index now and further upside is possible as long as the bulls manage to hold on to the support zone, the expert said.For the day, the index fell 82.05 points, or 0.74 per cent, to close at 10,936.Should the Nifty50 sustain below 10,930, it may seen profit booking and move towards the next support level at 10,879, which is the 38.2 per cent Fibonacci retracement of the recent rally from 10,557 to 11,078 levels, said Rajesh Palviya of Axis Securities.This support zone also coincides with the bullish gap area between 10,877 and 10,860 formed on July 10, which now remains a key support to watch out for," the expert said.
Mazhar Mohammad of Chartviewindia.in believes the bulls may defend the breakout gap formed on July 10.A failure to do so may result in the expansion of the downswing, initially towards its 50-day moving average, whose value is present around the 10,738 level.
For the time being, traders should adopt a neutral stance, he said.
Nagaraj Shetti of HDFC Securities said Nifty formed a long-body negative candle on Monday, which signalled the beginning of a short-term downward correction.
The worrying factor could be a weak market breadth at high levels, he said.
The bears are putting pressure at higher levels, said Chandan Taparia of Motilal Oswal Securities.
Nifty has to hold and sustain above 10,929 to extend its gains towards 11,080, he said.





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