The NSE index is likely to test a support at 11,208.41.
The support is identified as the 161.8 per cent Fibonacci projection level of the downtrend from its June 3 high to its June 19 low.
Earlier on Wednesday, the index broke a support from its 200-day exponential moving average and the 38.2 per cent Fibonacci retracement level on the uptrend from the October 26, 2018, low to the June 3, 2019 high, suggesting a fall to the 161.8 per cent projection level.
A bounce is expected from the 11,208.41 level. However, if this level is broken, the index may fall further to the May 14 low of 11,108.3.
The May 14 low is a crucial support for the index, as a break below it may lead to a sharper fall.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.