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 several 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 three companies that are in the oversold levels
Butterfly Gandhimathi Appliances Ltd
Butterfly Gandhimathi Appliances manufactures LPG Stoves, Mixer Grinders, Table Top Wet Grinders Stainless Steel, and Aluminium Pressure Cookers amongst others.
On a weekly timeframe, the company’s Relative Strength Index is’ ‘28.26,’ ’ indicating that the stock is trading near the oversold region.
The stock has dropped around 4.64% in the last week, 13.34% in the last month, and 27 % in the last three months.
Navin Fluorine International Ltd
Navin Fluorine International Ltd is primarily engaged in producing refrigeration gases, inorganic fluorides, and specialty organofluorines and offers contract research and manufacturing services.
On a weekly timeframe, the company’s Relative Strength Index is ‘28.44,’ ’ indicating that the stock is trading near the oversold region.
The stock has dropped around 4.15% in the last week, 12.31% in the last month, and 16% in the last three months.
UPL Ltd
UPL is primarily engaged in agrochemicals, industrial chemicals, chemical intermediates, specialty chemicals, and the production and sale of field crops and vegetable seeds.
The stock has gained around 1.10% in the last week but dropped 15.60% in the last month, and 23.09 % in the last three months.
The company’s shares closed their trading session at ₹479, up 4.52 percent from the previous closing level of ₹458.20. On a weekly timeframe, the company’s Relative Strength Index is ‘29.98,’ ’ indicating that the stock is trading near the oversold region.
Written By Omkar Chitnis
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