Wipro, Asian Paints among 10 overbought stocks with RSI above 70
Relative Strength Index (RSI) is an important technical indicator which can help investors to identify potential opportunities. The RSI is a momentum oscillator that measures the speed and change of price movements in a stock. It ranges from 0 to 100 and is often represented as a line graph below the stock's price chart.
RSI is calculated based on the ratio of upward price movements to downward price movements over a specified period, typically 14 days, and then normalized to fit within the 0-100 range. As over 90 stocks were trading in an overbought zone on July 17, Monday, according to data sourced from StockEdge, ETMarkets has handpicked 10 stocks from this group that warrant attention. The overbought zone refers to a situation where a stock's price has risen significantly and is considered to be trading at a higher value than its perceived true worth.
In the context of RSI, the overbought zone is typically considered to be when the RSI value is above 70. An RSI reading above 70 indicates that the stock may be overvalued and could be due for a correction or price pullback in the near future.10 Stocks in Overbought Zone Now, let's explore the 10 selected stocks currently trading in the overbought zone: 1) Wipro Ltd. (RSI: 72.18, Prev.
RSI: 65.54) 2) Piramal Pharma Ltd. (RSI: 72.15, Prev. RSI: 57.58) 3) Tejas Networks Ltd.
(RSI: 72.13, Prev. RSI: 80.16) 4) Asian Paints Ltd. (RSI: 72.02, Prev.
RSI: 69.15) 5) IIFL Finance Ltd. (RSI: 71.91, Prev. RSI: 70.93) 6) Vaibhav Global Ltd.
(RSI: 71.51, Prev. RSI: 44.46) 7) Can Fin Homes Ltd. (RSI: 71.49, Prev.
RSI: 69.15) 8) Mastek Ltd. (RSI: 71.39, Prev. RSI: 70.35) 9) Supreme Industries Ltd.
(RSI: 71.27, Prev. RSI: 70.93) 10) ICICI Securities Ltd. (RSI: 71.2, Prev.
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