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Nifty continued its downward journey for the third consecutive day as it fell 133 points to close at 14,239 on January 25, marking its lowest close since January 7.
It was October 2020 when Nifty had fallen for three consecutive sessions.
Last Thursday, Nifty made a 'dark cloud cover' bearish reversal pattern on the daily chart while it made a spinning top on the weekly chart.
This indicates that the bears dominated the bulls as the markets corrected and most of the gains were eroded during the latter part of last week.
Now, the intermediate uptrend has shifted downward.
RSI (14) has now breached 60 levels on the daily chart and is showing signs of negative divergence.
Nifty also closed below its 20-day EMA. This is the first time after November 2, 2020, that Nifty has closed below its 20-day EMA.
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