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Episode 2327, Mar 19, 2020, 02:00 AM
Benchmark Index Nifty breached 8,500-mark and closed below the same with a loss of 5.56 percent, forming a bearish candle on March 18.
As per the moving average, Nifty has drifted below its 100-day exponential moving average on the monthly time frame.
The index has corrected almost 38.20 percent from the all-time high levels by connecting the lows of October 2008.
Nifty, on the monthly chart, has broken its 11-years rising channel pattern.
If the index closes below 8,800 level till March 2020 expiry, then the said bearish pattern will come to play.
The current chart structure on any time frame only indicates bears overweight bulls.
Additionally, the Indian Volatility Index (VIX) has spiked above 63.95 levels.
Earlier, we witnessed the same level of volatility in the year of 2008 and 2009. This observation indicates that further downward momentum with some wild swings cannot be ruled out.