The Relative Strength Index (RSI) is a common technical indicator used by traders to determine if a stock is in an overbought or oversold zone. The RSI oscillates between zero and 100, and when it is above 70, the stock is considered overbought, and when it is below 30, the company is considered oversold.
Trading with an RSI below 30 can give traders and investors a number of advantages, such as early warning signals, oversold situations, risk management, and flexibility. To confirm the oversold signal and make informed trading decisions, the RSI should be utilized in conjunction with other technical and fundamental research tools.
Here are two companies that are in the oversold levels
Eicher Motors Ltd.
Eicher Motors Ltd is a global leader in middleweight bikes that manufactures commercial vehicles, motorcycles, and technical components.
The stock has dropped more than 12.83% in one week, 12.89% in one month, and 7.53% in the previous three months.
The company’s shares concluded today’s trading session at Rs 3184.80, down 1.16 percent from the previous closing levels of Rs 3,225.20. The company’s Relative Strength Index is ‘27.27,’ indicating that the stock is trading near the oversold region. The company’s 50-day moving average price is Rs 3,535.14, and the stock volume today was 20,99,192.
Gujarat Fluorochemicals Ltd
It is one of India’s top manufacturers of fluoropolymers, fluoro-specialties, chemicals, and refrigerants.
The stock has dropped more than 3.19% in the last week, 10.20% in the previous month, and 8.06% in the last three months.
The company’s shares closed their trading session at Rs 2,873.35, down 2.27 percent from the previous closing level of Rs 2,940.15. The company’s Relative Strength Index is ‘29.36,’ ’ indicating that the stock is trading near the oversold region. The company’s 50-day moving average price is Rs 3,221.09, and today’s trading volume was 1,69.930.
Written By Omkar Chitnis
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