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India’s equity benchmark is approaching a level seen as oversold by some investors after rising oil prices and a weak rupee sent the gauge to a seven-month low.

A measure of short-term momentum, known as the 14-day relative strength index, for the NSE Nifty 50 index is close to 30, a level considered oversold by those who follow the technical indicator. Recent history indicates that the stock gauge tends to reverse course whenever it breaches that threshold. Still, the Nifty 50 has had previous episodes of holding below it for prolonged periods.

The selloff has pushed a similar indicator for the NSE’s small-cap index to its most oversold level since June 2022, with the Nifty Smallcap 250 index marking its worst day since Aug. 5 on Monday.