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
Britannia Industries Limited
Britannia is one of India’s oldest and leading food companies, founded in 1892. It specializes in bakery and dairy products, with biscuits contributing to about 80 percent of its revenue. The company is part of the Wadia Group and operates brands like Good Day, Marie Gold, and Tiger
With a market capitalization of Rs. 1,29,795.49 crores on Tuesday, the stock closed at Rs. 5388.65, with an RSI of 76.65, indicating that it is in the overbought zone, offering the potential for a bearish reversal.
Marico Limited
Marico is a Mumbai-based consumer goods company operating in over 25 countries. It offers products in hair care, skin care, edible oils, and health foods under brands such as Parachute, Saffola, and Set Wet.
With a market capitalization of Rs. 92,148.74 crores on Tuesday, the stock closed at Rs. 711.30, with an RSI of 75.24, indicating that it is in the overbought zone, offering the potential for a bearish reversal.
GMR Airports Limited
GMR Airports is Asia’s largest private airport operator and the world’s second-largest, managing over 121 million passengers in FY24. It operates major airports in Delhi, Hyderabad, and Goa and has international operations in the Philippines and Indonesia, and the company is also developing airports in Greece and India.
With a market capitalization of Rs. 90,638.25 crores on Tuesday, the stock closed at Rs. 85.84, with an RSI of 74.50, indicating that it is in the overbought zone, offering the potential for a bearish reversal.
Rainbow Children’s Medicare Ltd
Rainbow Children’s Medicare is a multi-specialty pediatric hospital chain headquartered in Hyderabad. It offers services in pediatric and maternal care across its hospitals in major cities. The company went public in 2022 and is expanding its presence in the healthcare sector.
With a market capitalization of Rs. 15,907.05 crores on Tuesday, the stock closed at Rs. 1566.40, with an RSI of 76.72, indicating that it is in the overbought zone, offering the potential for a bearish reversal.
Written by Sridhar J
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