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Since November 3, 2020, Nifty had been trading well above its 21-day exponential moving average (EMA) on the daily timeframe.

But on January 27, 2021, the benchmark index witnessed a negative opening below its 21-day EMA, following global peers and continued witnessing selling pressure throughout the day.

Since November 20, prices had been within a rising channel pattern but on January 27, the benchmark index witnessed a negative breakdown of a rising channel pattern on the daily interval.

The breach of 21-day EMA along with a cluster of channel pattern breakdown indicates Nifty may trade with a bearish shade in the further trading sessions.

Currently, India VIX is near its horizontal trendline resistance which is placed at 25.20 level on the daily chart.

If India VIX chart witnesses a breakout above its resistance level, then Nifty may sail through the sharp volatility with a bearish bias.

Bank Nifty has witnessed a four-month long rising channel pattern breakdown on the daily interval and it has closed below its 21-day exponential moving average.