KRBL, Prestige Estates: Stocks exiting oversold zone; Ready for pullback?

Stocks like BSE, KRBL, Prestige Estates, Sharda Cropchem and Sumitomo Chemical are seen exiting oversold zone and can potentially rally up to 16 per cent in the ensuing pullback, suggest daily charts.

Stocks across-the-board have witnessed a significant correction in recent trading sessions amid valuation worries, and uncertainty over the timing of US interest rate cuts.

The NSE benchmark Nifty 50 has declined 3 per cent from its recent high, while the broader indices - the Nifty MidCap 150 and SmallCap 250 have shed 7.4 per cent and 10.1 per cent, respectively.

However, stocks tend to pullback after a sharp adverse reaction, wherein the stocks get oversold. Among the key momentum oscillators, the 14-day RSI (Relative Strength Index) is one such key technical indicator that suggests if the stock is overbought or