The selling pressure is high as foreign investors are pulling out of the Indian markets and the government acting against the market's expectations among other reasons. The sentiment is . If nifty breaks the current uptrend, then we're looking at 10500/9950. In case of a currently unlikely reversal, we're looking at targets of 11750/12100.
As of now, we're at a deciding level and I expect the markets to trend sideways in the short term before seeing any major developments in either direction.
If Nifty manages to hold above 10980,the market can calm down and we can look to BUY.
However I have a strong reason to believe that in the coming few sessions, the market is going to test current support level to be certain of the end in selling before moving up. If Nifty falls through, then we're looking at next support levels as mentioned in the initial analysis.
Also, RBI will announce interest rates on the 7th of August. Given the current state of the economy, expectations are for them to be dovish. If they cut the rate, it'll be the fourth consecutive cut. My expectations are therefore in line with the market's.
As for Nifty, the worst seems to be over and if we get a favorable decision on 7th, I might say the selling should be off for now and then look to BUY.
Looking at 10700 & 10500 as next supports.