Orange Alert: Top 3 Overbought Stocks (HDFC Sec Research Report)

A technical report on stocks that are overbought on monthly charts considering their key western & Elliot wave technical parameters.

Caveat: At times the stock consolidates in overbought territory for a few weeks and later resumes its uptrend. In such cases, buying can be initiated above resistance levels mentioned.

Nestle Monthly Chart CMP 17097

 The stock has been forming a strong bear candle after a long legged doji.
 Price is hovering in extremely overbought zone.
 The RSI oscillator started to slide down from overbought zone which is negative sign.
 Resistance is placed at 17750-18370 whereas support is near 16100- 15750.

Tata Consumer Monthly Chart CMP 380

 The stock has retraced more than 80% of previous falling leg.
 Prevailing upward retracement is slow compared to previous fall.
 Make note that current rise is an upward retracement and the next fall could slide below 213.
 Resistance is placed at 390-410 whereas support is near 360- 340.

PIIND Monthly Chart CMP 1618

 The stock has formed a high wave candle pattern on May month chart which is a bearish reversal formation.
 Negative divergence has been witnessed in RSI oscillator.
 Price is likely to begin the next correction in coming days.
 Resistance is placed at 1650-1700 whereas support is near 1520- 1425.