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NSE index may retest support near 9,950. The bounce that the index got from the 9,950 level might have run its course and the index may drop to test these levels once again, as suggested by its technical chart.
The NSE index had formed a Doji candle with open and close around the same level on Tuesday, and has retreated from a one-month high hit earlier in the day on Wednesday.
Reversal is seen after the index tested a Fibonacci resistance level at 10,398, the 23.6 per cent retracement level of the uptrend from December 26, 2016 low to January 29, 2018 high.
A resistance zone is created between the 10,400 and 10,650 levels by multiple crests and troughs in the month of February and March.
Momentum indicators like MACD is also negative. The 50-day exponential moving average (EMA) and 200-day EMA are expected to act as critical support levels.
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