These are most overbought, oversold stocks on BSE, NSE ahead of Budget 2026

A technical scan on Nifty 500 stocks reveals that 6 shares were trading in overbought territory based on the RSI parameter, while 66 languished in the oversold zone a day ahead of the Union Budget.

Equity markets in India have been under pressure for a major part of January thus far. The NSE Nifty 50 hit a new all-time high at 26,373 on January 5, after which the index tumbled to a low of 24,920 on January 21 - an intra-day month fall of 5.5 per cent or 1,453 points.  Since then, the Nifty has recouped some losses and today quotes with a loss of 3.2 per cent for the month around 25,300 levels, the last trading day ahead of the Union Budget 2026. Similarly, the broader Nifty 500 index has dropped 3.5 per cent thus far in January 2026.  Amid this nearly 80 per cent (397 stocks) of the Nifty 500 index are seen trading with losses this month, shows data from ACE Equity. An analysis of this data reveals that 20 Nifty 500 stocks have declined over 20 per cent in January; whereas mere 5 stocks managed to log a gain in excess of 20 per cent.  Meanwhile, a technical scan of the Nifty 500 stocks today shows that 6 Nifty 500 stocks namely - ONGC, Hindustan Copper, SBI, Oil India, GE Shipping and Karur Vysya Bank are trading in the overbought territory as per the Relative Strength Index (RSI) parameter.  ALSO READ | Chris Wood trims India exposure; UBS, Bernstein cautious on Indian equities  The RSI is technically a key momentum oscillator, which helps in determining overbought and oversold stocks. The RSI indicator helps in measuring the magnitude of recent price changes in a particular stock or index over a period of time, generally 14 days.  The 14-day RSI is plotted on a scale of 0 - 100; a reading below 30 is considered as oversold, conversely a reading above 70 is said to be overbought. However, it may be noted that stocks trading in oversold or overbought territory need not necessarily suggest a likely immediate reversal. At times, stocks tend to remain in overbought or oversold for a prolonged period of time.  Meanwhile, the technical scan flags that as many as 66 Nifty 500 stocks are currently trading in the oversold zone - with a RSI reading below 30 as of date.  ALSO READ | Markets often rebound after pre-Budget corrections: SBI Securities  Some of the prominent stocks to trade in oversold zone are - Reliance Industries, Asian Paints, Bharti Airtel, ITC, Mahindra & Mahindra, Maruti, Swiggy, Sun Pharma, L&T Technology Services (LTTS), Kalyan Jewellers, Hyundai India, SBI Card, Jubilant Foodworks, Cipla and Jio Financial Services. 

Here's a full list of overbought and oversold Nifty 500 stocks ahead of Budget 2026: