Sensex, Nifty recede from life highs; seen overbought

Reuters Market Eye - The BSE Sensex and Nifty briefly post losses for the day and then turn flat after earlier gaining more than 1 percent to hit record highs.

Brokers see some consolidation for now. Nifty's 14-day relative strength index (RSI) is slightly above 70, indicating the market was overbought in the near-term. For a graphic click http://link.reuters.com/gew67v.

Overseas funds were net buyers of $160.6 million worth of shares on Friday, marking a 20th buying session in the previous 21, for a net total of $1.6 billion, exchange and regulatory data shows. Markets were closed on Monday for a public holiday.

 

Nifty earlier rose to a record high of 6,574.95, surpassing its previous record high hit on March 11. The BSE Sensex gained to an all-time high of 22,040.72, above its previous record high hit on March 10.

Among blue chips, ICICI Bank Ltd is down 1 percent after earlier gaining 1.3 percent, while Larsen and Toubro Ltd falls 1.3 percent.

(Reporting by Abhishek Vishnoi)