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
Tata Motors Limited
Tata Motors is a leading global automobile manufacturer, producing a wide range of vehicles, including cars, trucks, buses, and defense vehicles. It has a significant presence in India and international markets, with its Jaguar Land Rover division being a key player in the luxury automobile segment.
With a market capitalization of Rs. 2,31,436.37 crores on Friday, the stock is currently trading at Rs. 628.50, with an RSI of 27.54, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Dr. Reddy’s Laboratories Limited
Dr. Reddy’s Laboratories is a global pharmaceutical company based in India, known for its high-quality generic drugs, active pharmaceutical ingredients (APIs), and biosimilars. It operates in over 20 countries and is a leader in the generics market, focused on making healthcare more affordable.
With a market capitalization of Rs. 93,520.12 crores on Friday, the stock is currently trading at Rs. 1120.80, with an RSI of 27.12, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Power Grid Corporation of India Limited
Power Grid is a state-owned electric utility company in India, responsible for the transmission of electricity across the country. It operates one of the largest transmission networks and plays a crucial role in maintaining the power infrastructure and facilitating the country’s energy needs.
With a market capitalization of Rs. 2,32,282.58 crores on Friday, the stock is currently trading at Rs. 249.75, with an RSI of 28.58, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Hero Motocorp Limited
Hero MotoCorp is the world’s largest manufacturer of motorcycles and scooters, based in India. Known for its popular models like the Hero Splendor, it has a strong domestic and international presence, focusing on innovation, fuel efficiency, and low maintenance cost.
With a market capitalization of Rs. 73,540.98 crores on Friday, the stock is currently trading at Rs. 3676.85, with an RSI of 28.25, indicating that it is in the oversold zone, offering the potential for an upside bounce.
State Bank of India Limited
SBI is the largest commercial bank in India, offering a wide range of financial services including retail, corporate, and investment banking. With a vast network of branches and ATMs, SBI plays a pivotal role in India’s banking sector and is government-owned.
With a market capitalization of Rs. 6,11,827.33 crores on Friday, the stock is currently trading at Rs. 685.55, with an RSI of 24.38, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Written by Sridhar J
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