The StratLab Daily
No. 99 · Wednesday 15 Jul 2026 · NSE, data through close
Redesign v5 · One-thesis + Market Health · Real data

Market Health shifts from Bear Market to Recovery.

The phase transition occurred on a flat day (NIFTY +0.11%), with conditions analog favoring a 0.03% average forward return.

What happenedMarket Health phase moved from Bear Market to Recovery.
The tensionRecovery begins with High risk and 45% confidence, historically limiting follow-through.
Net readCautious Recovery posture.
Nifty Close
24,078.50
+0.11%
Market Phase
🟡 Recovery
session 1 · ↑ recovering
MHI
58.58
39th %ile
Risk
High
confidence 45
FII Idx Fut
−262.7K
6.1th %ile
Walls
24.0–24.2K
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 = 15 Jul · source: StratLab participant OI
What this means: NIFTY closed at 24,078.5 (+0.11%), a flat session with little conviction.
02 The turn

02 The Turn

What this means: Market Health phase flipped: Bear Market → Recovery. MHI surged from 37.3 to 58.6.
03 The catch

03 The Catch (Market Health)

Market health over the last 20 sessions
Market Health Index · 20 sessions · 0–100 · endpoint = 15 Jul · percentiles vs 1,240 sessions
What this means: MHI now 58.6 (38.6th percentile); risk remains High, confidence at 45%.
Phase
🟡 Recovery
risk High
Participation
45.2906
delivery breadth
StratLab Breadth Index
53.6
60th %ile, trailing year
04 Days like today

04 Days Like Today

Recovery, High Risk
Conditions analog · Phase + Trend + Risk match
n = 12 · tier: exact
HorizonAvgMedianWin rateWorst
Next session+0.20%+0.46%67%−1.72%
Next 5 sessions+0.03%+0.60%58%−4.60%
Next 10 sessions−0.02%+0.07%50%−3.14%
Next 20 sessions−0.63%−0.60%42%−7.74%
5-day forward avg +0.03%, worst -4.6% across 12 matches.

Conditions like today historically favored flat returns with a negative skew; exposure benefit limited.

05 Tomorrow's tripwires

Three checks that settle the argument

MHI > 58.6, confidence > 45.0
A sustained move above the transition day's MHI and confidence would confirm recovery strength.
MHI percentile < 38.6
A drop in MHI percentile below 38.6 would signal fading momentum.
MHI declines to 37.3
A return to the Bear Market MHI level of 37.3 would invalidate the recovery.
The ledger

Where that leaves us

Lines up bullish
  • MHI surge from 37.3 to 58.6 signals a structural phase shift.
  • NIFTY closed at 24,078.5, holding flat with no immediate sell pressure.
Lines up bearish
  • Recovery begins with High risk and 45.0% confidence.
  • Analog worst case of -4.6% warns of significant downside risk.
  • MHI percentile at 38.6 leaves the health reading in lower tercile.

Net read: The shift to Recovery is a positive structural signal, but the 0.03% average forward return and -4.6% tail risk across similar conditions warrant a neutral-to-cautious posture.

Market Health's move to Recovery is encouraging, yet the low confidence and high risk, coupled with tepid analog returns, suggest letting the recovery prove itself before adding risk.

Regime