Lupin, Kalyan Jewellers among 10 overbought stocks with RSI above 70
RSI, a widely used momentum oscillator, provides a numerical gauge of the speed and magnitude of recent price movements in a stock. Ranging between 0 and 100, it helps investors identify overbought and oversold conditions in a stock's price. In simple terms, RSI offers a snapshot of a stock's current momentum and indicates whether it might be due for a reversal in price direction.
When RSI values breach the 70 mark, it indicates the stock might be overbought, suggesting a potential for a price correction or downward movement. Conversely, when RSI values dip below 30, it suggests the stock might be oversold, potentially pointing toward an upcoming upward price movement. RSI is like a compass that helps investors navigate through turbulent waters with greater clarity.
On August 16, Wednesday, StockEdge unveiled a list of over 50 stocks that were trading in the overbought zone. Among these, ETMarkets meticulously selected ten stocks that exemplified this trend. These stocks merit closer observation, as they could potentially be signaling a period of elevated prices and might warrant attention from investors.
1) Shyam Metalics And Energy Ltd. 2) Kalyan Jewellers India Ltd. 3) Indian Railway Finance Corporation Ltd.
4) Lupin Ltd. 5) Suven Pharmaceuticals Ltd. 6) Cochin Shipyard Ltd.
7) JSW Energy Ltd. 8) REC Ltd. 9) Hatsun Agro Product Ltd.
10) Indian Overseas Bank As data for stocks trading in an overbought zone on August 17, Thursday, gets updated after market hours, astute investors can use these insights to chart a course toward more informed investment decisions. (Disclaimer: This is an AI-generated article. Recommendations, suggestions, views, and opinions given by experts are their own.
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