We believe that some amount of bounce is due as Nifty has found some support at 10500-10550.
Bank Nifty also has good support at 26600. PSU banks have multiple support at 2650-2700 levels. Bank Nifty should test 27300.
Nifty on the higher side should face resistance near to its 200 DMA 10850 while midcap and smallcap should see some bounce back from the current level, Vikas Jain, Sr. Research Analyst, Reliance Securities said.