have seen a steady fall since the presentation of the Union Budget on July 5, with the S&P BSE Sensex and Nifty50 slipping over 5 per cent each. The bearish sentiment has seen significant support levels getting broken. Neither the advance/decline nor stock price are showing any signs of recovery. As the nervousness prevails, staying away for now appears to be the general mood of investors.
As the markets
drift towards lower levels, several stocks have entered oversold territory. Unless markets
see some stability, staying away from stocks looks to be a wise thing to do.
A quick check on the Stochastic indicator suggests one-third of Nifty500 stocks are trading in the oversold territory. On the Relative Strength indicator, too, 25 per cent stocks look oversold. Among these, 86 stocks are trading in the oversold region as per both the RSI and Stochastic indicators.