Global Indices Update–Oversold but No positive Divergences. Nifty not oversold.

A quick look at the Global Indices.

S&P 500

  • Oversold and back to sub 30 RSI
  • In the previous instance of oversold it has either made a new low and Positive divergence or goes sideways before a clear recovery.
  • Will it be a quick recovery or a formation of positive divergences over next few days but eventually a good recovery over next few weeks.


S&P 500


Dow Jones

  • Back to june lows as well as pre covid prices.
  • Most oversold since covid lows.
  • Will it be a quick recovery or positive divergence over next few days but eventually a good recovery over next few weeks is the view.

Dow Jones No positive


Nasdaq 100

  • Oversold but no positive divergences yet.
  • Also the index seems a major top is done like 2000.
  • May not gain leadership for long time. A short term bounce here but better to focus on Dow and S&P


Nasdaq 100 no divergence


VIX – No major panic but no event as well.


Vix - Still a little away from the
35 mark which has been a bottoming out zone for S&P 500.
Panic not as high but no major event as well.

Not the time to be bearish but be ready to watch for reversals.


VIX 500



  • Not oversold.
  • Holding on above the trendline


Nikkei Holding



  • Breaks March June lows.
  • Showing positive divergences
  • If no follow up selling in next few sessions or a quick move above last 3 days highs would indicate a reversal.


DAX positive Divergence


For the Nifty we are still away from being oversold. 16800 was the last breakout and another gap at 16950. So that should act as a support.

Nifty not


Bank Nifty 38000-38500 a support.  ( still a leader.)

Nifty IT maintain the view to be not bearish and accumulate on dips.

Time to look out for stocks reversing after retesting and holding on to the recent breakouts.



  • Maintain the stance of India to outperform global markets.
  • Continue to look for stock specific opportunities.
  • The outlook remains bullish for the short to medium to long term.


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