Cipla, BSE among 10 overbought stocks with RSI above 70
Relative Strength Index (RSI). RSI is a technical indicator that offers valuable insights into a stock's momentum and potential reversal points. Understanding the concept of the overbought zone can help investors navigate the market more effectively.
The overbought zone is a critical concept in technical analysis, indicating that a stock's price may have risen too steeply and is possibly due for a correction. RSI, ranging from 0 to 100, identifies the overbought zone when its value exceeds the 70 mark. When the RSI crosses above 70, it suggests that the stock has been trading at high levels relative to its recent price history, and there may be a higher chance of a pullback or price correction.
RSI serves as an essential tool for investors because it helps gauge a stock's momentum and potential reversal points. By identifying the overbought zone, investors can be cautious about entering new positions or consider taking profits if they are already holding the stock. RSI's ability to indicate when a stock is potentially overvalued allows investors to avoid buying at the peak of a price surge and helps protect their capital.Top 10 Stocks in the Overbought Zone: On August 4, Friday, data sourced from StockEdge revealed that over 70 stocks were trading in an overbought zone.
Here are ten noteworthy stocks from this group that have caught the attention of ETMarkets: 1) Lupin Ltd. — RSI: 88.14 (Prev. RSI: 85.7) 2) Indian Railway Finance Corporation Ltd.
— RSI: 86.3 (Prev. RSI: 85.86) 3) Cipla Ltd. — RSI: 84.6 (Prev.
RSI: 80.04) 4) BSE Ltd. — RSI: 83.51 (Prev. RSI: 81.16) 5) Indiabulls Housing Finance Ltd.
— RSI: 83.41 (Prev. RSI: 82.93) 6) Vaibhav Global Ltd. — RSI: 83.08 (Prev.
RSI: 78.1) 7) MRF Ltd. — RSI: 82.34 (Prev. RSI:
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