An investor needs to be cautious when there is greed in the street of the stock market while investing his hard saved money. Currently, the market is at overbought levels. We have only 8 Trading days ahead of Budget 2021. As many are optimistic about the budget of 2021 especially the logistics and pharma sector. We have done deep research so far and found 10 Stocks that are currently overbought levels and a big correction in them may occur this trading week beginning from 25th January 2021 as on 26th there is going to be a Holiday on account of Republic Day in India.

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The 10 stocks on whom correction may occur are as follows:

1) Biocon:

Biocon has given investors a very high return on an investment after may 2020 being a biological pharma company. But Recently Q3 numbers came and were not up to the mark hence stock tumble. The stock fell to deliver a good result both on QoQ basis and compare with last December quarter also. If the stock continues to fell it may be good for the short position.

2) Tata Power Company Ltd:

Tata Power Company Share has given investors 183 % return on investment if bought in march 2020 now as per technical it looks to overbought levels and may correct any time soon. If stock started falling on Monday it will be good to build up short positions.

3) L&T Finance Holdings Ltd:

Recently this stock managed to go up to 3 digits but thereafter selling pressure started as it is trading at overbought levels. If it's December 2020 Result compare with December 2019 Result then they were not up to the mark and had disappointment for the investors hence stock tumbled.

4) Oil and Natural Gas Company Ltd:

ONGC is one of the Largest PSU's in India in the oil exploration segment. The Stock managed to reach the Hundred levels but facing strong resistance there with volumes and may tumble any time soon if anything is not done by Government in Budget 2021 for such PSU’s.

5) NTPC Limited:

NTPC is primarily involved in the generation and sale of bulk power to State Power Utilities in India. It is one of the favorite stocks of Investors with having less capital as it has managed to give good returns to the investors who had bought it in march 2020 levels. The stock felt resistance on 15th December 2020 by reaching 105 Levels and above and now it is continuously downtrend and we may see a big correction in it any time soon.

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6) RBL Bank Limited:

RBL Bank earlier known as Ratnakar Bank Limited has hit a high of 260 and above is now facing strong resistance and is at overbought levels. As per our research if stock continuously remains in the first 15 Mins on Monday a correction may be seen soon.

7) Tata Steel Limited:

Tata Steel Limited has given super duper returns to the investors who had bought them in October 2020 or March 2020 but now stock is trading at resistance levels and it is a sign of caution for investors to book profit in it as correction may be seen in this stock any time soon.

8) Hindalco Industries Limited:

Hindalco Industries deals with metals and had quite a bull run but after reaching a high of 276 it is started a resistance if the stock continues to remain in a downtrend on Monday, we may see a correction then.

9) Coal India Limited:

Coal India is only one company in India listed and does the mining of coal in India If seeing technically the stock is in a continuous downtrend in all time frame charts daily weekly and monthly it managed to reach 150 levels once thereafter faced strong resistance and hence may correction rise soon as it is in overbought levels.

10) NMDC Limited:

Last but not least we have NMDC ltd. NMDC is engaged in the exploration and production of Iron Ore along with Diamond, production, and sale of Sponge Iron, and generation and sale of Wind Power. NMDC is currently trading at Rs 112 Levels it managed to reach Rs 130 levels thereafter in a downtrend if it continuously remains in a downtrend on Monday then a short position can be made on it.

Note: In the above article most of the stocks are PSU hence hedged your investment as the budget should be right around the corner.

You can also read our other articles as well. Top 5 Steps for Investment in Stock Market

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