The StratLab Daily
No. 27 · Friday 27 Mar 2026 · NSE, data through close
Redesign v5 · One-thesis + Market Health · Real data

Bear Market Phase Begins — MHI Drops to 33.5 as Nifty Falls 2.09%

Market Health shifted from Transition to Bear; confidence 25.0, risk Very High.

What happenedMarket Health transitioned from Transition to Bear Market.
The tensionDespite the drop, similar historical conditions favored a 5-day average return of 1.85%.
Net readNet bearish with high risk, but historical bounce odds temper extreme fear.
Nifty Close
22,819.60
−2.09%
Market Phase
🔴 Bear Market
session 1 · → stable
MHI
33.50
10th %ile
Risk
Very High
confidence 25
FII Idx Fut
−279.5K
0.4th %ile
Walls
22.8–23.0K
PE base · CE wall
01 The crowd

01 The Crowd

Positioning over the last 20 sessions
FII net index futures · 20 sessions · '000 contracts · endpoint = 27 Mar · source: StratLab participant OI
What this means: Nifty fell 2.09% to 22,819.6, triggering a Market Health phase shift to Bear.
02 The turn

02 The Turn

What this means: MHI plunged from 40.9 to 33.5, crossing the threshold into Bear Market.
03 The catch

03 The Catch

Market health over the last 20 sessions
Market Health Index · 20 sessions · 0–100 · endpoint = 27 Mar · percentiles vs 1,170 sessions
What this means: MHI 33.5 (9.7th percentile), confidence 25.0, risk Very High — trend still Stable.
Phase
🔴 Bear Market
risk Very High
Participation
76.7068
delivery breadth
StratLab Breadth Index
19.6
8th %ile, trailing year
04 Days like today

04 Days Like Today

Conditions like today historically favored a 5-day average return of 1.85% (worst -0.29%) across 5 similar matches.
Conditions analog · Phase + Trend + Risk match
n = 5 · tier: phase_trend_risk
HorizonAvgMedianWin rateWorst
Next session+0.17%+0.57%60%−2.35%
Next 5 sessions+1.85%+2.28%80%−0.29%
Next 10 sessions+3.26%+2.21%100%+1.46%
Next 20 sessions+0.68%−0.78%20%−3.82%
Bear phase new (run length 1); historical analogs lean positive short-term, but confidence is low.

DEFENSIVE

05 Tomorrow's tripwires

Three checks that settle the argument

Confirm
MHI staying below 33.5 and phase run length extending past 1 solidifies bear.
Watch
A rally matching the 1.85% analog average would test bear conviction.
Break
A reclaim of MHI above 40.9 would flip back to Transition phase.
The ledger

Where that leaves us

Lines up bullish
  • Historical 5-day avg forward return +1.85%
  • MHI at 9.7th percentile — deeply oversold
  • Confidence low at 25.0 (possible false phase signal)
Lines up bearish
  • Phase shift to Bear Market confirmed today
  • MHI dropped to 33.5, risk level Very High
  • Price down 2.09% in a single session

Net read: Fresh Bear phase with MHI 33.5; oversold extremes favor a tactical bounce, but risk Very High limits upside conviction.

Market Health moved to Bear Market today with MHI at 33.5 and confidence at 25.0. Historical analogs suggest a 1.85% average bounce over 5 days, but the stable trend and very high risk keep stance defensive.

Regime