NSE Index may test a support near 9,958, the 23.6 pct Fibonacci retracement level of an uptrend from June 30 low of 9,448.75 to its life high of 10,114.85 hit on Thursday.
A break below 9,958 may lead to a fall towards 9,860, the 38.2 pct retracement level.
Index's RSI shows bearish divergence and has cut below the overbought level of 70, signalling a further correction or consolidation.
On the upside, index may face resistance near the psychological level of 10,000, its life high 10,114.85, and near 10,142, the 38. 2 pct Fibonacci projection level of the uptrend from Dec 26, 2016 low to June 6, 2017 high.
Dr. Reddy's Labs, NSE index's top pct loser on Friday, may retest or breach its May 29 low of 2,380.35.
Stock retreated after testing 61.8 pct retracement level of the fall from Oct 28, 2016 high to May 29, 2017 low earlier in the month, suggesting the downtrend is not yet complete.
