Adani Ports, NTPC among 5 Nifty stocks in overbought zone; check key levels

In a bull market, stocks tend to remain in overbought zone for a longer period viz-a-viz a bearish phase. Presently, 18 stocks from the Nifty index were technically trading in overbought zone.

With the markets rattling new highs this December, stocks across-the-board have witnessed a phenomenal rally on the bourses. Now, with the US Federal Reserve finally signaling an end to the policy tightening and a possibility of 3 rate cuts in the next calendar year, the bulls just got the extra impetus.

However, given the sustained rally select stocks including the benchmark index have entered overbought zone. Technically, a RSI (Relative Strength Index) reading above the 70 level is considered overbought in the market. It’s important to note, that stocks continue to rally in overbought conditions too as long as other momentum