SBI Cards, HCL Tech: 88 stocks from Nifty500 show strength amid volatility

Adani Enterprises, Berger Paints (I), Bharti Airtel, Eicher Motors, Grasim Industries are among the other notable names

After rising around 8 per cent in the month of December, the benchmark S&P BSE Sensex, the Nifty50, and the broader Nifty500 index are witnessing bouts of volatility in January amid Q3 results' announcements and anticipation of Union Budget 2021. The frontline Sensex index was trading nearly 500 points lower in Friday's noon deals amid sell-off in heavyweights like HCL Technologies, ICICI Bank, HDFC, Infosys, and Reliance Industries.

That said, the frontline indices are still up 8 per cent on a year-to-date (YTD) basis. Usually, traders are seen taking a breather from markets after clocking steep gains; waiting for a decisive trend to emerge. The current week has seen strong volatile sessions, depicting one such behaviour. On the contrary, investors cautiously look for opportunities in such markets with an expectation of reversal and continuation of a bullish trend.

This week, nearly 88 stocks from the Nifty500 index traded in the overbought condition -- a value above 70 on the Relative Strength Index (RSI) which tells the stock is in a profit booking or selling zone. However, the scrips did not fall below the overheated territory over the past four days, reflecting a firm price strength that did not get affected during the wild swings in the markets. 

Adani Enterprises, Berger Paints (I), Bharti Airtel, Eicher Motors, Grasim Industries, HCL Technologies, HDFC Asset Management Company, Indiamart Intermesh, Larsen & Toubro, United Spirits, Persistent Systems, Relaxo Footwears, Sobha, and Sunteck Realty are among the notable names that firmly braced the volatility and continue to exhibit uptrend. 

List of stocks in overbough condition of RSI

Data source: spidersoftwareindia.com