On July 17, Monday, StockEdge reported 12 stocks with RSI trending down, and ETMarkets has meticulously selected 10 stocks from that list, which present an intriguing opportunity to explore. Before we delve into the specifics, let’s grasp the significance of RSI and its impact on stock movement.
What is Relative Strength Index (RSI)?
Developed by J. Welles Wilder, the Relative Strength Index (RSI) is a momentum oscillator that ranges from 0 to 100. It compares the magnitude of recent price changes to evaluate whether a stock is overbought or oversold. The RSI is typically calculated based on 14 days of price data and is displayed as a line graph below the stock’s price chart.
The Importance of Assessing Stock Movement Based on RSI
Assessing stock movement based on RSI is vital for several reasons:
Identifying Overbought and Oversold Conditions: RSI readings above 70 indicate overbought conditions, suggesting the stock may be due for a pullback. Conversely, readings below 30 indicate oversold conditions, implying a potential rebound in the stock’s price.
Trend Confirmation: RSI can confirm the overall trend of a stock. If a stock is in an uptrend, its RSI will generally stay above 50, while in a downtrend, the RSI tends to remain below 50.
Divergence Signals: RSI can provide valuable signals when it diverges from the stock’s price movement. Bearish divergence occurs when the stock makes higher highs while the RSI makes lower highs, indicating a potential trend reversal to the downside.Momentum Assessment: RSI measures the strength of a stock’s price movement, helping investors gauge its momentum.
Risk Management: RSI can aid in managing risks by signaling potential price reversals or downtrends.
10 Stocks with Falling RSI
Now, let’s explore the 10 stocks that have witnessed a decline in their Relative Strength Index:
1)Restaurant Brands Asia Ltd. (RSI: 49.86, Prev. RSI: 52.61)
2) Marico Ltd. (RSI: 49.84, Prev. RSI: 54.73)
3) Ingersoll-Rand (India) Ltd. (RSI: 49.52, Prev. RSI: 56.76)
4) Sundaram Finance Ltd. (RSI: 49.48, Prev. RSI: 52.05)
5) Prestige Estates Projects Ltd. (RSI: 49.04, Prev. RSI: 50.07)
6) Five-Star Business Finance Ltd. (RSI: 48.86, Prev. RSI: 52.55)
7) Garware Technical Fibres Ltd. (RSI: 48.65, Prev. RSI: 52.44)
8) NTPC Ltd. (RSI: 48.06, Prev. RSI: 50.08)
9) Poly Medicure Ltd. (RSI: 44.75, Prev. RSI: 53.88)
10) Angel One Ltd. (RSI: 44.69, Prev. RSI: 61.04)
Conclusion
(Disclaimer: This is an AI generated article. Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
