Only 93 Nifty 500 stocks trade in overbought territory, more upside likely

Market participants closely monitor the RSI to determine the strength based on 70 and 30 values. This assists in identifying instruments that are supposedly experiencing increased buying or selling.

Overbought territory is the position in which stocks or indices seemingly observe selling pressure and are anticipated to either turn downward or delay the space of rising.

At present, merely 93 stocks in Nifty 500 index are trading the overbought category of the Relative Strength Index (RSI). It is a technical indicator that is plotted on the scale of 0-100, with values crossing 70 are termed as overbought, and values falling 30 are denoted as oversold. 

Market participants closely monitor the RSI to determine the strength of stocks based on 70 and 30 values. This assists in identifying instruments that