StockEdge data reveals that 73 stocks were trading in the overbought zone on July 7 based on their high Relative Strength Index (RSI) values. RSI indicates the strength and momentum of a stock s price movements on a scale of 0 to 100. Stocks with RSI above 70 are potentially overvalued and may require caution before investing.
Ten stocks have emerged from the overbought zone after experiencing bearish RSI trends. Relative Strength Index (RSI) allows investors to keep track of stock market trends, assessing the momentum and identifying potential overbought or oversold stocks. When a stock s RSI hits above 70, it indicates an overvalued stock, but a bearish RSI shows a loss of bullish momentum leading to a potential reversal.
The Relative Strength Index (RSI) is a valuable tool for understanding the dynamics of stock movement, ranging from 0 to 100. ETMarkets recently handpicked 10 overbought stocks for analysis using the RSI, indicating the magnitude and speed of recent price movements.
A total of 70 stocks were trading in the overbought zone according to data from StockEdge. ETMarkets has selected 10 stocks based on their Relative Strength Index (RSI) values. RSI is a widely-used indicator that measures a stock s price movement and indicates if it is overbought or oversold. Readings above 70 suggest a potential price correction or pullback.
ETMarkets has identified 10 companies with an RSI above 75 that offer an interesting investment opportunity, with market capitalizations exceeding Rs 50,000 crore. The companies span sectors including digital payments and e-commerce, consumer goods, steel, FMCG, financial services, retail, defense electronics, banking, retail chains and aerospace and defense. The firms solid returns and strong fundamentals make them attractive options for investors seeking exposure to growing sectors.