The Nifty snapped its 9-day winning streak but the index managed to close above its crucial support level of 10500 for three days in a row on Wednesday.

The index which formed a bearish candle on the daily candlestick charts closed above its crucial 5-days exponential moving average (DEMA) which offers some hope to the bulls.

However, if the index breaches 10495 in Thursday’s trading session, chances are that the trend could tilt in favour of bears.

“In next trading session if bears succeed in getting a close below 10495 then the market may come under pressure for a couple of days more. In that scenario downswing shall get extended further towards 10400 kind of levels,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

The Nifty which was sailing nicely in the first half of the trading session pared gains after the RBI Deputy Governor NS Vishwanathan has defended 1-day default clause of February 12 circular, saying default is a lagging indicator and not a leading indicator of financial stress.

The fall in the market was led by PSU banks, followed by Nifty Bank which was down 1%, Nifty Auto slipped 0.5%, and the Nifty pharma was down 0.4%.

On the other hand, Nifty FMCG index rose 1.7%, followed by Nifty Media which gained 1.4%, Nifty Realty rallied 0.5%, and the Nifty Metal index was up 0.4%.

Top Nifty gainers include names like ITC (up 2.9%), followed by Wipro (up 2.7%), Zee Entertainment (up 2.2%), UltraTech Cements (up 1.9%).

Top Nifty losers include names like HPCL (down 3.1%), followed by Axis Bank (down 2.6%), Titan Company (down 2%), Luipin (down 1.8%), Tech Mahindra (down 1.7%), and HCL Technologies (down 1.4%).