GAIL, Dr Reddy’s among 74 stocks of BSE 500 with RSI below 30

In the past six trading sessions, the benchmark index BSE Sensex plunged 723.64 points at 2.72 per cent at 25,866.95 till November 11. (Photo: PTI)

In the past six trading sessions, the benchmark index BSE Sensex plunged 723.64 points at 2.72 per cent at 25,866.95 till November 11. With the fall in the benchmark index, Relative Strength Index, or RSI of around 15 per cent of stocks in the BSE 500 index fell below 30, indicating the stock is in oversold region.

Some of the stocks like GAIL India, Dr Reddy’s Laboratories, Adani Ports & SEZ, Cairn India, CESC, Sun Pharma, HDFC, Wipro, Eicher Motors and Idea Cellular are few of them which are trading with an RSI of below 30.

RSI, is classified as a momentum oscillator, measuring the velocity and magnitude of directional price movements. Momentum is the rate of the rise or fall in price. The indicator has an upper line, typically at 70, a lower line at 30, and a dashed mid-line at 50. When price moves up very rapidly, at some point it is considered overbought (When the RSI crosses 70). Likewise, when price falls very rapidly, at some point it is considered oversold (When the RSI fell below 30) the level of the RSI is a measure of the stock’s recent trading strength.

Here is a complete list of stocks in the BSE 500 which are in oversold regions: