A potential #DeathCross on the #Nifty500 Index is developing & worth watching

What is a Death Cross?

A Death Cross occurs when the 50-day moving average (DMA) crosses below the 200-day moving average (DMA).

On weekly charts, it's the 10-week moving average (WMA) crossing below the 40-week WMA.

Historically, it has marked the transition from a bull market to a bear market

Key Observations from History
When it Matters: Particularly impactful after a strong overbought bull run.

Outcomes: Such events led to long correction or consolidation phases, lasting anywhere from 37 weeks to 88 weeks.

Exception: The only failure occurred in 2006, when markets continued their uptrend despite the signal.

If the Death Cross is triggered investors should prepare for potential market headwinds.