# Nifty's 8-Week Losing Streak Sparks Relief Rally Hopes

> Nifty's 8-week losing streak may trigger a relief rally but the big bottom remains far.
- Title: Nifty's 8-Week Losing Streak Sparks Relief Rally Hopes
- Summary: Nifty's 8-week losing streak may trigger a relief rally but the big bottom remains far. Nifty's 8-week losing streak has pushed the market into deeply…
- Keywords: nifty, nifty 500, geojit investments, market correction, relief rally, 2026, 22600, 200-week moving average, 20-day moving average, 50-day moving average, 22182, 21743
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/expert-view/will-niftys-8-week-losing-streak-trigger-a-relief-rally-but-the-big-bottom-isnt-in-yet/articleshow/134683940.cms
- Author: Nikhil Agarwal
- Published: 2026-10-05T02:15:00+00:00
- Read time: 1 min
- Topics: nifty, nifty 500, geojit investments, market correction, relief rally, 2026, 22600, 200-week moving average, 20-day moving average, 50-day moving average, 22182, 21743
## Nifty's 8-week losing streak
Nifty has entered its eighth consecutive weekly decline, the longest losing streak in 25 years.

> Nifty has now entered its eighth consecutive weekly decline, the longest losing streak in 25 years
## Market oversold conditions
Only 12% of NSE 500 stocks trade above their 20-day moving averages, while 16% are above their 50-day averages.

> Only 12% of NSE 500 stocks are trading above their 20-day moving averages, while just 16% are above their 50-day averages
## Historical rebound patterns
History shows Nifty rebounded an average of 14.1% after seven-week or longer declines in the past 25 years.

> Following these declines, the index delivered an average gain of about 14.1% in the following weeks
## Current correction size
The current decline began on 16 August 2026 and has a cumulative correction of 8.7%.

> The current decline, which began on 16 August 2026
## Critical support levels
The market is near a horizontal support region formed by 21743 and 22182, reaction lows from 2025 and 2026.

> We are now in the close vicinity of a horizontal support region that is formed by 21743 and 22182, the reaction lows of 2025 as well as 2026 respectively
## Support region significance
This support region successfully arrested multi-month declines in previous two instances.

> The significance of this support region is that this region was successful in arresting multi month declines that preceded in the last two occasions
## Market breadth indicators
Only 18% of NSE 500 stocks trade near their 52-week lows, indicating growing market stress.

> The 52-week low number also points to growing stress, with 18% of NSE 500 stocks now trading near their 52-week lows
## Long-term breadth indicators
36.4% of stocks remain above their 200-day moving averages, suggesting no full-scale capitulation.

> 36.4% of stocks remain above their 200-DMA and 26.2% above their 100-DMA
## Short-term oversold scenario
The market appears deeply oversold in the short term and ripe for a technical rebound.

> The market appears deeply oversold in the short term and ripe for a technical rebound
## Long-term market outlook
Any near-term recovery is likely a relief rally within a broader corrective move, not a durable market bottom.

> Therefore, any near-term recovery is likely to be a relief rally within a broader corrective move
## Auto stock weakness
The Nifty Auto Index has slipped towards the 25,260-25,200 support zone, coinciding with the 100-week moving average.

> The Nifty Auto Index has slipped towards the crucial 25,260-25,200 support zone, which coincides with the 100-week moving average
## Derivative data
80% of stock futures show short positions on Friday, with 70% showing short exposure week-on-week.

> around 80% of stock futures witnessing short positions on Friday and nearly 70% showing short exposure on a week-on-week basis
## Potential rebound target
The index may rebound towards 26,280 if it sustains above this level.

> The index is deeply oversold on daily charts and nearing oversold territory on the weekly timeframe, suggesting scope for a short-term relief rally towards 26,280
## Key support level
Any pullback below 26,280 may attract fresh selling pressure.

> Unless the index sustains above 26,280, any pullback is likely to attract fresh selling pressure
## Key takeaway

Nifty's 8-week losing streak has pushed the market into deeply oversold territory with only 12% of NSE 500 stocks above their 20-day moving averages, suggesting a short-term relief rally but not a durable market bottom.