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The V-shape reversal rally has almost completed 88.60 percent retracement of the entire downswing seen from January 2020 top to March 2020 bottom.

Nifty50, on the weekly chart, has completed the 'Bearish Bat' harmonic pattern and is currently trading below its potential reversal zone (PRZ).

Moreover, the index has breached its upward slanting trendline on the daily chart which indicates bears are likely to overtake bulls in the coming trading sessions.

The gap down opening of September 4th drifted the index below its 21- day exponential moving average which acted as a critical support zone in a previous couple of occasions.

On September 9th, Nifty witnessed a gap down opening following its global peers and later on formed a sharp V-shape reversal rally on an intraday basis and closed above 11,200 mark.

For the past couple of trading sessions, market breadth has been in favour of bears.

Bank Nifty has formed a bearish dark cloud cover candlestick pattern on the weekly chart and neglected its previous week’s bullish candle.

On the weekly chart, there is a cluster of exponential moving averages (50, 100,200) hanging around 24,000 –25,000 zone and Bank Nifty has taken resistance in the same zones.

One can say there is a cluster of bearish patterns hanging around the benchmark index Nifty and one would like to initiate a Bear Put spread strategy on the benchmark index.