Nifty seems to continue to move as part of a larger A-B-C correction (weekly chart below):
Nifty formed a low around 10000 levels on 26th October and posted a nice up move. We are seeing this up-move as part of a correction. As long as we don’t break above the 10710 level, we expect this move to be reversed leading to a test of 10000 levels again.
Short term support for Nifty can be found around 10400/10300 levels.
The break of key resistance level of 10710 may pave way for test of 11000 levels, but this seems to be less likely.
The corresponding make-or-break level for Bank Nifty is at 25915.
Conclusion: We maintain a bearish bias below 10710 level, and expect Nifty to test 10000 in the short term.
