Mumbai: The BSE Sensex went down 110.80 points to 73,208.75 in early trade on Monday. The NSE Nifty slipped 20.15 points to 22,692.95.
Last week was a bounce back phase for the global equity markets in the entire correction since the war started. Key Indices in US and Europe saw a pullback along with drop in VIX and US10Y Bond Yields. Brent Crude Oil continues to remain elevated while USDINR saw a sharp pullback.
Nifty weekly RSI has slipped below 30 for the first time since COVID crisis. Nifty has formed triple bottom bullish divergence on the daily charts which ideally should bring in a short term reversal. Last week, Nifty has also filled the last standing gap on daily charts at 22,470. As shared earlier, IT Index has done well in the last three weeks. Pharma which has been holding well since March saw an attempt to breakdown on Thursday however the recovery was a sharp one.
FII’s continue to be net sellers in cash and derivatives segment. Index shorts still continue to hover around 2.68 lakh mark. Week on week short build up was seen in Nifty Futures while Banknifty Futures saw closure of long positions. Options chain is suggesting call writing resistance at 23,000 whereas Put writers are sitting deep at 22,000 strike price.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds)