A major weekly trendline that has not been broken since early 2016 is being tested. In fact today price closed below the trendline. Tomorrow is going to be a make of break day for the market. If it fails to take support and close above the trendline as well as the 100EMA, down move can be more aggressive in the coming weeks. Next big support in weekly chart is around 10000 level.
Comment:
For the time being downfall stopped as Nifty takes support from weekly 100EMA line. Looks like it is going to be rangebound between 10700-11000 for the next few weeks. As no good news is anticipated in domestic level as well as the global markets also looking pretty shaky, market taking a solid bounce back from here to start a upward rally is very unlikely.