Bears ruled the street as Nifty nosedived 326 points on September 24. The bullish setup was under threat on the back of multiple bearish divergences and rising trendline breakdown.

The six days of continuous fall have placed the index near short-term support levels and a mild pullback can be expected in the coming trading sessions though the selling pressure cannot be ruled out at higher levels.

As per the Fibonacci theory, the key low of August 3 at 10,882 has been touched on the lower side which indicates that the medium-term trend is favouring the bears and any pullback is likely to see supply pressure.

The level of 10,737 is likely to act as a support for the next few days and a bounceback till 10,980 can be expected.

The index is trading near 261.8 percent Fibonacci projected level, based on the previous week's trading range, suggesting that bears might take a breather.