4 major PSU rail stocks in overbought state, profit booking ahead: Anand James

economictimes.indiatimes.com:

After gaining an average of 14% this week and more than 30% in the last one month, railway stocks may now come under some profit booking pressure. «4 out of 5 major railway stocks like RVNL, IRFC, IRCTC and Railtel are overbought with RSI above 75. Even though the outlook for these stocks remains bullish, expect some profit booking in the near term before the bulls regroup,» said Anand James, Chief Market Strategist at Geojit Financial Services. Edited excerpts from an interview:


Given the broad-based buying seen in the market this week, do you think Nifty will easily scale the 20,000 peak ignoring all the concerns around the spike in crude oil price and dollar? What are the targets?
Seven weeks after coming off from the record peak in December 2022, Nifty is back within its vicinity, with a weekly close above the 7-week SMA. Further, with just 23% of NSE 500 stocks in the 5% vicinity of their respective all-time highs, the market is only in the initial stages of a broad based rally. We are confident of continuation of uptrend, with Nifty’s upside target raised to 21200.

Nifty PSE and Nifty CPSE stocks were the top performers in the week. Do you see any signs of the PSU indices being at an overbought stage?

Unlock Leadership Excellence with a Range of CXO Courses

Nifty PSE and CPSE indices have moved into the overbought zone with RSI moving above 80 in daily, weekly and monthly time frames. However, only 45% from Nifty CPSE and 35% of Nifty PSE stocks have moved into the overbought zone which is hinting that we may see new