Sensex, Nifty in a downward spiral. Are the markets in an oversold zone?

The S&P BSE Sensex has lost nearly 3 per cent thus far in October, and down almost 6 per cent from its 52-week high level of 67927.23 hit on September 15, 2023.

Rising bond yields, driven by hawkish central bank policies and flaring crude oil prices, have cast a shadow over the markets in recent days. The S&P BSE Sensex has shed nearly 3 per cent in October so far. From its 52-week high of 67,927.23 reached on September 15, 2023, the index has dropped by close to 6 per cent.

The decline from their recent peak levels, as indicated by technical charts, has not yet pushed the front line indices into oversold territory according to their relative strength index (RSI), which still hovers around the 40 mark for both the Sensex