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
Vedanta Limited
Vedanta is a global diversified natural resources company with a strong presence in metals, oil, gas, and power. It operates in sectors like zinc, copper, lead, and iron ore. The company is focused on sustainable practices and contributing to India’s growth through its vast operations.
With a market capitalization of Rs. 1,46,913.28 crores on Tuesday, the stock closed at Rs. 375.70, with an RSI of 27.58, indicating that it is in the oversold zone, offering the potential for an upside bounce.
National Aluminium Company Limited
NALCO is a public sector enterprise and one of the largest producers of aluminum in India. The company manufactures alumina, aluminum, and other by-products. NALCO is known for its high-quality aluminum production and commitment to sustainability.
With a market capitalization of Rs. 26,925.02 crores on Tuesday, the stock closed at Rs. 146.60, with an RSI of 23.79, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Tata steel Limited
Tata Steel is one of India’s largest steel producers, with a global presence in over 26 countries. The company manufactures a wide range of steel products used in various industries like automotive, construction, and engineering. Tata Steel is committed to sustainable steel production and innovation.
With a market capitalization of Rs. 1,62,534.42 crores on Tuesday, the stock closed at Rs. 130.20, with an RSI of 27.54, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Sona BLW Precision Forgings Ltd
Sona BLW is a leader in manufacturing precision automotive components, with a focus on electric vehicle parts. It caters to global automakers and is expanding in the EV sector. The company is known for its high-quality and performance-driven products.
With a market capitalization of Rs. 25,664.52 crores on Tuesday, the stock closed at Rs. 412.80, with an RSI of 25.14, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Hindalco Industries Ltd
Hindalco is a leading global producer of aluminum and copper, part of the Aditya Birla Group. It has a significant presence in the metals industry, focusing on sustainable and efficient production. The company operates in over 12 countries and serves diverse industries worldwide.
With a market capitalization of Rs. 1,27,721.12 crores on Tuesday, the stock closed at Rs. 568.35, with an RSI of 25.70, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Written by Sridhar J
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