Nifty 50 opened lower on Monday as the financial and IT stocks faced a sell-off on the first trading day of the week. The other benchmark index, BSE Sensex also showed a similar behavior. At press time, both indices of the Indian stock market were down 82 points and 325 points, respectively.
Last week’s rebound in the dollar strength index and elevated US bond yields are the major headwinds for the Indian equities which have already been in a downtrend since October. There has been a nice recovery since the start of November but it could just be a deadcat bounce.
On a yearly timeframe, the NIFTY 50 index is still up 7.29% this year. This marks the 8th consecutive green year for the Indian benchmark index.
The following chart shows that the index has found a strong support around 18,900 points level. As long as this level holds, there is nothing to worry about. Another important region is the 19,250 level which has been a major pivot this year.
