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NSE index, which has lost more than 4 per cent since it had hit a record high of 11,760.2 points on August 28, may test a support at 11,064.24 points, technicals show.
The level is identified as the 38.2 per cent Fibonacci retracement of the uptrend from March 23 low to August 28 high. The stock has broken below its 50-day exponential moving average (EMA) and the 23.6 per cent Fibonacci retracement level, which suggests, that the decline may continue up to the next 38.2 per cent retracement level.
Support is also expected at 11,161.66 points, the 61.8 per cent Fibonacci projection level of the uptrend from March 23 low to May 15 high (wave 1) and at August 2 low of 11,234.95 points.
The stock's wave pattern suggests it is in the fourth wave (a corrective wave) of a five-wave uptrend. The MACD line is below its signal line, considered unfavorable for the index.
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