Technical view: Three Nifty stocks that appear oversold on the charts

Here are three stocks among the Nifty50 index that appear to be oversold as per technical charts

Even though the markets rebounded from day's low to end firm on Tuesday, shrugging off state poll jitters and the sudden exit of Reserve Bank of India's governor, three stocks among the Nifty50 index still appear to be oversold as per technical charts.

NTPC : The stock has seen a sell-off in the recent times with strong negative trend as per weekly time frame. The technical indicators RSI (Relative Strength Index) and MACD (Moving Average Convergence and Divergence) suggest that the couner is trading in oversold territory. As per daily chart pattern, the stock tumbled sharply from Rs 160 to Rs 135 without any rebound, correcting 15 per cent in a month and has formed a 'falling channel' pattern as per technical charts.

SUN PHARMA : The stock has corrected 30 per cent from Rs 589 to Rs 410 and breached the support of Rs 420 (as per daily chart) in this downtrend. It has been trading in oversold region on Relative Strength Index (RSI). The ADX (Average Directional Index) is trading at 45, which indicates that the stock could rebound. A level above 40 usually sees counters reverse trend.

TATA MOTORS : All the major technical indicators suggest that the stock is trading in oversold territory. The weekly time frame has "Falling Channel Pattern" making lower lows lower highs. The stock is trading with above-average volume. The recent fall (gap down) has negatively impacted the sentiment.