Ceat, Ambuja, IRCTC among 30 stocks that can defy current market volatility

Ambuja Cements, Ceat, Eicher Motors, Pidilite Industries, Tata Chemicals, Torrent Power and Wockhardt are few of the prominent stocks holding on to the bullish outlook.

stock market, markets, trading, nse, bse, sensex, nifty, rally
bullish stocks
Avdhut Bagkar Mumbai
2 min read Last Updated : Aug 23 2022 | 12:22 PM IST
The key benchmark indices, the BSE Sensex and Nifty 50 plummeted close to 2.50 per cent each in just two trading sessions, a move last seen during the June and May 2022 market correction, wherein the indices hit new 52-week lows. 

This sharp fall, after a thrilling 18 per cent rally from the June lows has made market participants anxious. Technically, a rally of more than 20 per cent is considered as a Bull Market and investors, traders see various opportunities to make immense profits during such phases.

Aggressive traders always look for opportunities where large gains can be made by playing relatively safer bets. Even while taking contra calls, stocks with underlying robust strength are preferred, as the possibility of going wrong becomes lesser. 

Despite a dismal start to the trading week and gloomy global sentiment, there are 30-odd stocks among the Nifty 500 index which seem reluctant to give-up the existing uptrend. These stocks exhibit a firm price action on the daily chart and are able to see accumulation on even slightest of weakness. 

These 30-odd stocks continue to trade firmly in the overbought category. Not having seen much of a negative impact suggests a robust underlying momentum, which traders and investor community like to prefer. 

Altogether 45 stocks are trading in overbought territory, out of which 30 stocks, close to three-fourth are strongly sustaining in higher zone since last 4-5 sessions. These stocks on RSI exhibit a price action that is able to withstand major sell-off at elevated levels, also in unprecedented times.

RSI, Relative Strength Index (RSI) is a momentum indicator that identifies strong and weak stocks. The technical indictor prefers to understand the underlying strength to gauge the price action. 

Ambuja Cements, Ceat, Eicher Motors, Pidilite Industries, Tata Chemicals, Torrent Power and Wockhardt are few popular stocks among market participants holding their bullish outlook strong in the overbought territory. Such price move technically indicates a formation of bigger upside ahead and may easily rise up to 15 per cent. Trend is robust as selling pressure fails to concede to a bear grip. 

List of stocks trading firmly in the overbought category of RSI

source: spidersoftware





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Topics :stock market tradingBuzzing stocksTrading strategiesStocks to buystocks technical analysistechnical chartsEicher MotorsTorrent PharmaWockhardtTata ChemicalsAmbuja CementIRCTC

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