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
NTPC Limited
NTPC Limited is India’s largest energy conglomerate, primarily engaged in the generation of electricity. It has a diverse portfolio of power plants, including coal, gas, and renewable energy. NTPC focuses on sustainability, with a strong commitment to renewable energy generation and environmental responsibility.
With a market capitalization of Rs. 3,54,073.76 crores on Tuesday, the stock closed at Rs. 365.15, with an RSI of 77.65, indicating that it is in the overbought zone, offering the potential for a bearish Reversal.
HDFC Bank Limited
Housing Development Finance Corporation (HDFC) is one of India’s leading housing finance companies. It provides a range of services, including home loans, insurance, and asset management. HDFC has a strong presence in both urban and rural markets and is known for its reliable and customer-focused approach.
With a market capitalization of Rs. 13,91,119.1 crores on Tuesday, the stock closed at Rs. 1818.00, with an RSI of 74.75, indicating that it is in the overbought zone, offering the potential for a bearish Reversal.
JSW Steel Limited
JSW Steel is one of the largest steel manufacturers in India, known for its cutting-edge technology and diverse product offerings, including flat and long steel products. The company is part of the JSW Group and focuses on sustainability, growth, and expanding its footprint in both domestic and international markets.
With a market capitalization of Rs. 2,58,215.48 crores on Tuesday, the stock closed at Rs. 1055.90, with an RSI of 73.81, indicating that it is in the overbought zone, offering the potential for a bearish Reversal.
Bajaj Finance Limited
Bajaj Finance is one of India’s largest non-banking financial companies (NBFC), providing a wide range of financial services such as loans, insurance, and investment products. Known for its robust digital platform, Bajaj Finance has a strong customer base and is recognized for its focus on consumer financing and growth.
With a market capitalization of Rs. 5,60,706.26 crores on Tuesday, the stock closed at Rs. 9045.40, with an RSI of 70.74, indicating that it is in the overbought zone, offering the potential for a bearish Reversal.
Written by Sridhar J
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