Benchmark indices Sensex and Nifty were down by nearly 2 percent and there is a sense of panic on the Street. The fall is in line with the weakness in global markets, as investors were assuming that the Fed would start cutting rates soon. But now the signal coming from some of the Fed members is that they are in no hurry to cut rates.
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 0 and 100. Traditionally the RSI is considered ‘oversold’ when below 30 and ‘overbought’ when above 70.
Listed below are 5 stocks that are trading below RSI 30 and may see some gain in the future:
PVR Inox Ltd
With a market capitalization of Rs. 14,812 crores, the shares of PVR Inox Ltd started Wednesday’s trading session on a lower note at Rs. 1,499 compared to its previous day’s close at Rs. 1,505. The share hit a low of Rs. 1,490 making a loss of around 1 percent and closed its day at Rs. 1,509 apiece. The company’s 52-week high is recorded at Rs. 1,875.45.
On a daily timeframe, the Relative Strength Index (RSI) of the company is ‘26.79’ indicating that the stock is trading in the ‘oversold’ zone. The shares are also trading below the 200 Exponential Moving Average (EMA).
Happy Forgings Ltd
With a market capitalization of Rs. 9,075 crores, the shares of Happy Forgings Ltd started Wednesday’s trading session on a lower note at Rs. 936.95 compared to its previous day’s close at Rs. 946.60. The share hit a low of Rs. 934 making a loss of around 1 percent and closed its day at Rs. 963.85 apiece. The company’s 52-week high is recorded at Rs. 1,087.40.
On a daily timeframe, the Relative Strength Index (RSI) of the company is ‘26.82’ indicating that the stock is trading in the ‘oversold’ zone. The shares are also trading below the 200 Exponential Moving Average (EMA).
Go Fashion (India) Ltd
With a market capitalization of Rs. 6,308 crores, the shares of Go Fashion (India) Ltd started Wednesday’s trading session on a higher note at Rs. 1,190.90 compared to its previous day’s close at Rs. 1,180.40. The share hit a low of Rs. 1,126.50 making a loss of around 2 percent and closed its day at Rs. 1,163 apiece. The company’s 52-week high is recorded at Rs. 1,404.70.
On a daily timeframe, the Relative Strength Index (RSI) of the company is ‘28.17’ indicating that the stock is trading in the ‘oversold’ zone. The shares are also trading below the 200 Exponential Moving Average (EMA).
Tata Technologies Ltd
With a market capitalization of Rs. 46,928 crores, the shares of Tata Technologies Ltd started Wednesday’s trading session on a lower note at Rs. 1,157 compared to its previous day’s close at Rs. 1,163. The share hit a low of Rs. 1,153 making a loss of around 1 percent and closed its day at Rs. 1,156 apiece. The company’s 52-week high is recorded at Rs. 1,400.
On a daily timeframe, the Relative Strength Index (RSI) of the company is ‘28.4’ indicating that the stock is trading in the ‘oversold’ zone. The shares are also trading below the 200 Exponential Moving Average (EMA).
HDFC Bank Ltd
With a market capitalization of Rs. 11,67,028 crores, the shares of HDFC Bank Ltd started Wednesday’s trading session on a lower note at Rs. 1,570 compared to its previous day’s close at Rs. 1,679. The share hit a low of Rs. 1,528.40 making a loss of around 9 percent and closed its day at Rs. 1,537 apiece. The company’s 52-week high is recorded at Rs. 1,757.50.
On a daily timeframe, the Relative Strength Index (RSI) of the company is ‘30’ indicating that the stock is trading in the ‘oversold’ zone. The shares are also trading below the 200 Exponential Moving Average (EMA).
Written By Vaibhav Patil
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