29 out of Nifty 500 stocks overbought; ABB, Apar Inds signal up to 20% gain

While it is risky to be bullish on the stock trading in the overbought category, the underlying trend must to be followed at all time.

Overbought is a condition in the stock market where market participants prefer to book profits and wait for healthy correction to re-enter. However, there are several stocks that usually get missed due to their robust momentum and reluctance to any sell-off.

Technically, the Relative Strength Index (RSI), most preferred indicator among traders; gauge the overbought and oversold condition by charting the strength on the scale of 0-100 values. 

Herein, value greater than 70 is regarded as overbought and below 30 values as oversold. 

At present, in total 85 stocks in Nifty 500 index are trading in the overbought category. Out