(Bloomberg) -- 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.

Indian equities have climbed by more than 10% since a selloff early last month, as investors cheered a commitment by Prime Minister Narendra Modi’s coalition government for continuity of pro-growth policies. Global funds returned to the nation’s stocks, with net purchases of $3.1 billion in June, providing a further boost to the bullish fervor.  

Also read: Calm Returns to Indian Stocks as Modi-Linked Concerns Ease

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