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 signaling that it is undervalued and could experience a price rebound.
The stocks to watch out for are listed below
MRF Limited
MRF Limited is one of India’s leading tire manufacturers, offering a wide range of products for automobiles, including tires, tubes, and tread rubber. The company also manufactures paints, undercarriage products, and allied products.
With a market capitalization of Rs. 54,381.97 crores on Friday, the stock closed at Rs. 1,28,224.80, with an RSI of 75.42, indicating that it is in the overbought zone, offering the potential for a bearish Reversal.
Solar Industries India Ltd
Solar Industries is a leading Indian manufacturer of industrial explosives and explosive initiating systems. The company caters to sectors such as mining, infrastructure, defense, and construction. Solar is known for its innovative products and global reach, with a strong presence in both domestic and international markets.
With a market capitalization of Rs. 1,15,507.39 crores on Friday, the stock closed at Rs. 12,705.00, with an RSI of 70.88, indicating that it is in the overbought zone, offering the potential for a bearish Reversal.
Tata Consumer Products Ltd
Tata Consumer Products is a part of the Tata Group, specializing in food and beverages, including tea, coffee, water, and ready-to-eat products. The company operates iconic brands like Tata Tea, Tetley, and Himalayan. It focuses on health and wellness, sustainability, and expanding its footprint in both India and international markets.
With a market capitalization of Rs. 1,13,970.44 crores on Friday, the stock closed at Rs. 1151.80, with an RSI of 76.26, indicating that it is in the overbought zone, offering the potential for a bearish Reversal.
AU Small Finance Bank Ltd
AU Small Finance Bank is one of India’s largest small finance banks, offering a range of banking products and services to individuals, businesses, and small enterprises. The bank provides services like savings accounts, loans, and digital banking. With a strong presence in rural and semi-urban markets, AU Bank focuses on financial inclusion and customer-centric solutions.
With a market capitalization of Rs. 49,998.95 crores on Friday, the stock closed at Rs. 671.55, with an RSI of 74.34, indicating that it is in the overbought zone, offering the potential for a bearish Reversal.
Written by Sridhar J
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