The StratLab Daily
No. 64 · Monday 25 May 2026 · NSE, data through close
Redesign v5 · One-thesis + Market Health · Real data

Market Health transitions from Bear to Recovery; MHI jumps to 50.8 from 34.3

Nifty rises 1.32% to 24,031.7. Phase change occurs after just 1 day.

What happenedThe health engine upgraded from Bear to Recovery with MHI rising from 34.3 to 50.8.
The tensionDespite the upgrade, risk level is High and confidence is just 45%.
Net readConditions like today historically favored a 0.61% average 5-day gain.
Nifty Close
24,031.70
+1.32%
Market Phase
🟡 Recovery
session 1 · ↑ recovering
MHI
50.79
28th %ile
Risk
High
confidence 45
FII Idx Fut
−215.0K
12.1th %ile
Walls
24.0–24.2K
PE base · CE wall
01 The crowd

The Crowd

Positioning over the last 20 sessions
FII net index futures · 20 sessions · '000 contracts · endpoint = 25 May · source: StratLab participant OI
What this means: The index climbed 1.32% to 24,031.7, hinting at building momentum.
02 The turn

The Turn

What this means: Market Health swung to Recovery after just 1 day, with MHI vaulting from 34.3 to 50.8.
03 The catch

Market Health

Market health over the last 20 sessions
Market Health Index · 20 sessions · 0–100 · endpoint = 25 May · percentiles vs 1,205 sessions
What this means: Phase is Recovery, trend is Recovering. MHI at 50.8 sits in the 28.1 percentile with 45% confidence.
Phase
🟡 Recovery
risk High
Participation
60.1202
delivery breadth
StratLab Breadth Index
51.1
53th %ile, trailing year
04 Days like today

Days Like Today

In 16 prior occurrences, the average 5-day forward return was 0.61% with a worst drawdown of -3.04%.
Conditions analog · Phase + Trend + Risk match
n = 16 · tier: exact
HorizonAvgMedianWin rateWorst
Next session+0.13%+0.17%56%−1.18%
Next 5 sessions+0.61%+0.76%62%−3.04%
Next 10 sessions+0.68%+1.46%62%−6.01%
Next 20 sessions+0.56%+0.81%69%−6.83%
Conditions analog: 16 matches produced a 0.61% average gain over 5 days.

With 45% confidence and high risk, posture is guarded but leaning into recovery.

05 Tomorrow's tripwires

Three checks that settle the argument

5-day return > 0.61%
Exceeding the average analog would reinforce the recovery thesis.
5-day return between -3.04% and 0.61%
Returns within this range keep the recovery in play but unconfirmed.
5-day return < -3.04%
A drawdown steeper than the worst analog would break the recovery pattern.
The ledger

Where that leaves us

Lines up bullish
  • Health phase flips to Recovery with MHI at 50.8.
  • 16 historical analogs show average 0.61% 5-day forward return.
  • Nifty gained 1.32% to 24,031.7.
Lines up bearish
  • Confidence is low at 45% with risk level High.
  • Worst analog 5-day return is -3.04%.
  • MHI percentile is just 28.1, indicating early recovery.

Net read: Cautiously constructive. Basic conditions favor 0.61% average forward returns, but fragility is high.

Market Health upgrades to Recovery with MHI at 50.8, supported by a 1.32% daily gain. Historical analogs suggest a 0.61% average 5-day return, but with 45% confidence and high risk, the recovery is fragile. A break below -3.04% would invalidate the setup.

Regime