Markets gave away all opening gains and closed in the red in the previous trading session, below the 20-day moving average, indicating profit-booking on the higher side.

Nifty formed a bearish candlestick pattern on the weekly timeframe, but it gave the highest monthly closing of the last ten months.

This indicates in mid-term a strong bullish momentum is in progress which can continue unless we see closing below 11,350.

The current correction in the market in terms of Elliott wave count is following ABC flat correction. At the same time price momentum oscillator (PMO) has reached below (-200) marks which suggests that very soon, bearish momentum may get over.

Moreover, crucial supports are presented by the line of polarity, standing around 11,500. However, any decisive closing below 11,500 can push the index towards unfilled gaps placed around 11,452-11,428 and lower towards 11,347-11,295.

Going forward, when it comes to positional signal, Supertrend, a very popular indicator is in buy mode on daily, weekly and monthly timeframe.

This trend will change only if the index will trade below the trailing stop loss line, placed around 11,300 as per this indicator.