NIFTY 50 has been in a downtrend since October last year. It has continuously been forming a Lower Low - Lowe High pattern.
Historically, with such a long and strong bearish trend, we have seen reversals in the zones when RSI is oversold on Weekly. In the current scenario, that is still not the case.
On top of this, the only strong region of confluence is at 14,300 - 13,800 levels.
Considering the above two aspects, I am still bearish on Nifty for another around 1,000 point fall before which we may see an end to this Bearish market.
Please note - This is on Weekly charts, so the fall might not be that straight.
On the upside, the gap region of 15,900- 16,200 shall offer good resistance.
Historically, with such a long and strong bearish trend, we have seen reversals in the zones when RSI is oversold on Weekly. In the current scenario, that is still not the case.
On top of this, the only strong region of confluence is at 14,300 - 13,800 levels.
Considering the above two aspects, I am still bearish on Nifty for another around 1,000 point fall before which we may see an end to this Bearish market.
Please note - This is on Weekly charts, so the fall might not be that straight.
On the upside, the gap region of 15,900- 16,200 shall offer good resistance.