Nifty nearing Support. Bank Nifty–Highly Oversold. Setting up for a Bounce or Bottom ?

NIFTY 10700-10850 a strong support zone.
Previous breakout point at 10800-10900
200 dema at 10600-10700
Trendline support at 10800.
RSI now oversold at 30

Previous candle bottom with a good
recovery in the day at 10860 should
also act as support.

BANK NIFTY --- RSI at sub 20.
Last seen in 2016.
Bottomed out in next 2-3 weeks.
Major support at 23500-2400.
Expect bottoming out in the
next few days

The only time before this RSI saw sub 20 was in end of 2011.

Conclusion

• Markets do not fall or rally in a linear fashion.
• Bottoming out in oversold zones can happen quickly at last bottoms for ex 10860 or take a grinding period of few days or a couple of weeks.
• The strategy should be to deploy cash if one has or if fully deployed then to just wait and be patient.

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