BSE shares have been on a remarkable run, rising 15% on Wednesday, September 18, and reaching a new 52-week high of Rs 3,830. This increase has been part of a larger upward trend, with the stock gaining 32% over the past 4 days and an impressive 80% in the last two months. While this performance is grabbing attention, some experts are raising concerns about the stock entering the overbought zone.
Technical Indicators Suggest Possible Correction After Strong Rally
According to technical analysts, the Relative Strength Index (RSI) of BSE shares has now touched 80, which signals an “overbought” condition. Stocks in this zone often see a slowdown or even a pullback, as traders may start booking profits. Jigar Patel from Anand Rathi highlights that while the stock has performed exceptionally well, a pullback towards Rs 3,350 or Rs 3,300 is possible in the near term.
Will NSE’s Upcoming IPO Boost BSE Stock Further?
Investors are also focusing on BSE due to the National Stock Exchange’s (NSE) much-anticipated Initial Public Offering (IPO), which is expected soon. After NSE’s IPO, its shares will be listed on BSE, which could bring further gains for BSE investors. Currently, BSE shares are listed on NSE, and this inter-exchange relationship is something investors are keeping a close eye on.
What to Expect from BSE Shares in the Coming Days?
Experts are advising investors to adopt a “wait and watch” approach before jumping into BSE at these high levels. Though the stock has shown a strong breakout on the weekly charts, its current market price is significantly above the Rs 3,300 breakout level. According to analysts like Jigar Patel, if market conditions weaken, BSE shares could correct back to around Rs 3,350 or even Rs 3,300.
As of 12:50 pm on Wednesday, BSE shares were trading at Rs 3,813.55, up by around 14.30%.
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