The Relative Strength Index (RSI) is a technical indicator used in financial markets to measure the speed and change of price movements. It ranges from 0 to 100 and is typically used to assess whether a stock or asset is overbought or oversold.
An RSI value above 70 indicates that the asset might be overbought, suggesting it could be overvalued and might experience a price correction. Conversely, an RSI below 30 indicates that the asset might be oversold, potentially signalling that it is undervalued and could experience a price rebound.
The stocks to watch out for are listed below
JSW Energy Ltd
JSW Energy Ltd. is a major Indian power company and part of the JSW Group, involved in power generation, transmission, and trading across the energy value chain. The company has a diversified portfolio that includes thermal, hydro, and solar power, and is increasingly focused on expanding its renewable energy capacity and developing new-age businesses like energy storage and green hydrogen.
With a market capitalization of Rs. 83,333.60 crores on Tuesday, the stock closed at Rs. 476.80, with an RSI of 22.33, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Supreme Industries Ltd
Supreme Industries Ltd is India’s largest plastic processing company, established in 1942. It manufactures a wide range of plastic products across multiple business divisions, including plastic piping systems, moulded furniture, industrial products, and protective packaging. The company has a pan-India presence with advanced manufacturing plants and exports to numerous countries.
With a market capitalization of Rs. 43,541.00 crores on Tuesday, the stock closed at Rs. 3427.70, with an RSI of 20.20, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Cohance Lifesciences Ltd
Cohance Lifesciences Ltd is an integrated Indian-based Contract Development and Manufacturing Organisation (CDMO) that was formerly known as Suven Pharmaceuticals Ltd. The company provides a full range of services to global life science and fine chemical companies, including custom synthesis, process R&D, and manufacturing of intermediates, APIs, and formulations.
With a market capitalization of Rs. 21,442.89 crores on Tuesday, the stock closed at Rs. 560.50, with an RSI of 13.35, indicating that it is in the oversold zone, offering the potential for an upside bounce.
SJVN Ltd
SJVN Ltd is an Indian public sector undertaking focused on hydroelectric, thermal, wind, and solar power generation and transmission. Incorporated in 1988, the company is a joint venture between the Government of India and the Government of Himachal Pradesh, and it is involved in power projects across India and Nepal. SJVN’s core activities include planning, executing, operating, and maintaining power projects, as well as providing consultancy services and trading energy.
With a market capitalization of Rs. 30,609.17 crores on Tuesday, the stock closed at Rs. 77.89, with an RSI of 17.72, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Written by Sridhar J
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