Move below the 200-day moving average indicates a long-term bear market

VIX has stayed fairly high, which indicates that fear exists. Breadth has been negative and there's more volume in net losers

The settlement has been negative after an index breakdown from a trading zone. The Nifty dropped below the psychological mark of 10,000, busting its own 200-Day Moving Average (200-DMA) in the process. It is now going through a recovery that has just about pulled it back above the 200-DMA. This could be a dead-cat bounce on short-covering since the signals suggest a long-term bear market is now on the cards.

The Nifty was trading in a zone of 10,300-10,600. Once a key support at 10,275 broke, the likely target was expected to be about 10,000. In fact, the Nifty found