Nifty shrinks below 10700 as bearish momentum expands with global markets showing no remorse and bears continue to gain the momentum. It was broadly a significant bearish momentum as we observed the breadth to be negative since the start of the session. Midcap, SmallCap, #Metals, Energy and Auto shredded almost 1 to more than 2%.
Technically the kind of rounded top we have observed on the daily Chart shows the slow distribution that is seen at 10900 levels. Nifty has somewhat made a Triple top pattern and it becomes a very important hurdle for bulls. A close is also seen relatively close to most important support that is placed at 10625. It all comes down to tomorrow’s session open and how price action plays out in the 1st hour of trading. A short-term bounce can be observed from that level but if we are below that we may see the expansion of bearish momentum to previous pivots which is at 10400 – 10450.