We had gone in last week, anticipating a turn lower in Nifty 50 , pointing out the completion of the upside leg near 25,400-25,600, which also coincided with the formation of an evening star, a bearish candlestick pattern.

Seven consecutive days of downsides that followed do point to a peaking of fear supporting expectations of mean reversion, especially with a vast majority of stocks having slipped below the 20-day SMA in a short time span.

While 24,500 and then 24,335 are near-term supports, the 200-day SMA at 24,167 is a key moving average. It stayed intact during August’s bear attack and would be a key level to watch.

VIX rises, but volatility expectations continue to be low.

An extended period of decline has prompted traders to raise their volatility expectations, but a VIX near

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