India Stocks Rally May Have a Tough Fight Amid Stretched Signals
- Nifty 50’s 14-day RSI tops 70, signaling overbought conditions
- The gauge capped its fifth straight quarter of advance in June
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The record-setting rally in Indian equities looks set to cool as technicals show the run is now looking stretched.
The relative strength index — a measure of short-term momentum — for the NSE Nifty 50 index moved deeper into overbought zone Tuesday after rising above 70 a day prior for the first time since January. This comes as the gauge capped its fifth straight quarter of advance, the longest stretch since 2021, boosting the nation’s market value to $5 trillion.