Street Signs: Stocks in overbought territory, PVR shares flat, and more

Markets are expected to remain volatile on opening as they absorb the results of Reliance Industries and Infosys

Stocks enter ‘overbought’ territory

The benchmark Nifty rose 4.2 per cent to end at 16,719 last week — its best weekly advance in 17 months. Following the sharp upmove, stocks have reached ‘overbought’ territory, which calls for some profit-taking, say analysts. “The momentum readings on the lower time chart have reached the overbought zone. Generally such set-ups lead to either a price-wise or a time-wise correction. Also, market participants will be eyeing the corporate results of some heavyweights, the US Federal Reserve meeting outcome, and the monthly expiry effect,” says Ruchit Jain, lead research, 5Paisa. Markets are expected to remain