The current momentum in the domestic benchmark indices, Sensex and Nifty, shows weak sentiment and a confused state of mind of traders and investors. Quite a few stocks are reflecting extremely bullish sentiment in their overall trend.
According to analysts at the current momentum, a total of 57 stocks in the Nifty 500 index are trading in the overbought category of Relative Strength Index (RSI). This indicator analyses the impact of change in price to identify the overbought and oversold territory. Investors consider the overbought situation as the area to look for profit booking or selling stocks. Likewise, oversold condition indicates bullish entry.
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