Hi Karthik...here's some material from my new toy...the Sensex charts you asked of saint.
Each of these is the daily chart. Each has the same dates indicating the start of the new bull run, and the start of the current correction, and is updated for today.
On the Bollinger Bands, the interpretations are that when the Moving Average middle line hugs either band, besides the continuation of the existing trend it would also denote extreme over bought or sold condition depending on the upper or lower band in question. The other sign is that when bottoms or tops are made outside the bands, this would call for reversal in the trend.
Notice how in the BolBand chart, on May 9, the price line begins to climb to the upper band and remains there almost all the way to Oct 4. Here comes the drop, and finally today, the price line almost punctures the lower band. So the possibility of a bounce up increases here.
On the RSI too, from May 9, the indicator remains in the upper reaches mostly till Oct 4, with brief drops into the neutral region. Meaning mostly extreme over bought. Then the slide begins on Oct 4. Today we are rock bottom, over sold, with a slight positive divergence visible at the tip. Another pointer for a possible bounce.
Finally, your favourite ADX indicator too seems to suggest the same. On May 9, D1 crosses above -D1 and simultaniously the ADX begins to bottom out followed by a surge to the up. Then the ADX remains mostly above 30 while D1 remains above -D1. With D1 above -D1, the trend it real, but with the ADX keeping mostly over 35 and peaking close to 42 a few time, the trend is now over stretched. Now notice how on Oct 4, -D1 crosses above D1 with the ADX falling in conjuction. This is all the way to today, when the ADX clearly noses up above 30, and correspondingly, -D1 begins to nose down at 32. Much depends on how the next couple of days shape up for D1 because if this begins to rise along with the ADX, and -D1 continues to slip, we may be looking towards at least a short term trend reversal...to the up!
For the rest, the monthly and weekly price indicators themselves have broken below the previous monthly and weekly peaks. So on the long term indicators the trend is distinctly bearish.
Would love to discus this further.