The Relative Strength Index (RSI) is a momentum indicator that used is in technical analysis. RSI measures the speed and change of a security’s recent price to evaluate overvalued or undervalued conditions in the price of that security. The RSI oscillates between zero and 100. Traditionally the RSI is considered ‘oversold’ when below 30 and ‘overbought’ when above 70.
Listed below are stocks that are trading above RSI 70 and may see a correction in the future:
REC Ltd
With a market capitalization of Rs. 88,818 crores, the shares of REC Ltd started Thursday’s trading session flat note at Rs. 338 compared to its previous day’s close at Rs. 342.70. The share hit a high of Rs. 342.70 making a gain of around 1.5 percent and closed its day at Rs. 341 apiece. The company’s 52-week high is recorded at Rs. 351.
On a weekly timeframe, the Relative Strength Index (RSI) of the company is ‘70.16’ indicating that the stock is trading in the ‘overbought’ zone. And the shares are also trading above the 200 Exponential Moving average (EMA).
Va Tech Wabag Ltd
With a market capitalization of Rs. 3,823 crores, the shares of Va Tech Wabag Ltd started Thursday’s trading session on a higher note at Rs. 618 compared to its previous day’s close at Rs. 614.75. The share hit a high of Rs. 624.40 making a gain of around 1 percent, which is also recorded as the company’s fresh 52-week high and closed its day at Rs. 614.60 apiece.
On a weekly timeframe, the Relative Strength Index (RSI) of the company is ‘75’ indicating that the stock is trading in the ‘overbought’ zone. And the shares are also trading above the 200 Exponential Moving average (EMA).
Anand Rathi Wealth Ltd
With a market capitalization of Rs. 10,417 crores, the shares of Anand Rathi Wealth Ltd started Thursday’s trading session on a higher note at Rs. 2,458 compared to its previous day’s close at Rs. 2,431. The share hit a high of Rs. 2,540 making a gain of around 3.15 percent, which is also recorded as the company’s fresh 52-week high and closed its day at Rs. 2,507 apiece.
On a weekly timeframe, the Relative Strength Index (RSI) of the company is ‘80.46’ indicating that the stock is trading in the ‘overbought’ zone. And the shares are also trading above the 200 Exponential Moving average (EMA).
Bajaj Auto Ltd
With a market capitalization of Rs. 1.62 lakh crores, the shares of Bajaj Auto Ltd started Thursday’s trading session on a higher note at Rs. 5,800 compared to its previous day’s close at Rs. 5,751. The share hit a high of Rs. 5,945 making a gain of around 3 percent, which is also recorded as the company’s fresh 52-week high, and closed its day at Rs. 5,925.25 apiece
On a weekly timeframe, the Relative Strength Index (RSI) of the company is ‘81.77’ indicating that the stock is trading in the overbought zone. And the shares are also trading above the 200 Exponential Moving average (EMA).
Written By Vaibhav Patil
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