Monthly nifty chart
The Monthly RSI (6) has reached levels last reached in September 2001 panic times due to the WTC terror attacks. This shows that we are in extremely oversold conditons and one should look for panic selling to enter markets.
Other parameters to be kept in mind are that since the last four months the nifty has closed on a monthly basis between 2960 and 2755. These levels are thus extremely important for the coming month. Only a break above or below those levels will lead to any sustainable move.