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A decisive close above the 5 DEMA level of 22,260 is crucial to initiate the pullback move. The index has been trading below its 5 DEMA for 15 consecutive sessions, accompanied by oversold readings on its trend strength indicators. The daily RSI remains confined within its oversold zone, while the ADX has stabilized, indicating waning momentum in the ongoing downtrend. The sharp descent of short-term moving averages further reinforces the prevailing bearish sentiment. Despite the bearish outlook, the oversold conditions could act as a trigger for a technical rebound in the near term. Immediate resistance is observed at 22,300, followed by 22,500 - a critical zone that coincides with the Run-Away Gap. If an 'Exhaustion Gap' emerges, it could signify the formation of a durable bottom in the corrective phase. A sustained pullback would provide an early signal to consider fresh portfolio allocations, potentially paving the way for a renewed bull trend. Traders are advised to remain nimble and await strong reversal signals before initiating long positions. In case of a rebound, a SELL on RISE strategy should be avoided, as the market may be on the verge of a turnaround.

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