The Nifty snapped its seven-day winning streak and closed in the red below 13,500 making the indecisive Doji candle on the daily charts on December 10.

The index took support near its 5-Day EMA placed around 13,396 to bounce back and close near its opening level.

The Nifty50, which started off on a weaker note, managed to climb 13,500 in intraday trade but selling pressure at higher levels pushed the index below 13,500 towards the end of the session.

The index closed 50 points lower at 13,478. It hit an intraday low of 13,399 and a high of 13,503. Experts are of the view that as long as the Nifty trades below 13,500, the bias could be on the negative side.

If the index fails to hold on to 13,399, the day's low on December 10, then further selling pressure is expected that could take the Nifty towards 13,260.

“Albeit Nifty50 witnessed intraday sell-off with a negative opening, it appears to have attracted some buying interest around 13,400 levels from where the index recouped almost all the intraday losses, which resulted in a Doji kind of indecisive formation,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“However, trading bias at this point in time appears to have turned negative as the Nifty not only breached preceding sessions low but failed to get past its high as well. Moreover, our twin momentum oscillators triggered a sell signal post-Thursday's price action. Hence, it seems to be a perfect time for bulls to take a breather,” he said.

If the Nifty trades below 13,399 in the next session for more than 30 minutes, then it shall resume weakness with more selling pressure. Initial target on the downside shall be around 13,260 levels, Mohammad said.

He said if the bulls quickly garner sufficient strength with a close above 13,550 levels then the Nifty shall extend its upswing towards 13,780 kinds of levels.

“For the time, intraday traders can consider shorting Nifty below 13,399 in the next session and look for a target between 13,300 and 13,260, whereas fresh buying opportunity shall arise only on a close above 13,550 levels,” he said.

India VIX was down by 1.10 percent from 18.92 to 18.71. Overall, lower levels of volatility suggest that the bulls are holding a tight grip and any small decline could be bought in the market.

On the options front, the maximum Put OI is placed at 13,000 followed by 12,000 strikes while maximum Call OI is at 13000 followed by 13,500 strikes.

“Marginal Call writing is seen at 13,500 then 13,900 strikes, while Put writing is seen at 13200 then 13400 strikes. Options data suggests a broader trading range in between 13200 to 13750 zones,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited told Moneycontrol.

"The index has to continue to hold above 13,350 zones to witness an up move towards 13,600 then 13,750 zones, while on the downside, key support exists at 13,300 zones," he said.