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Oversold Stocks

Even in a bull market, there are certain stocks which go out of favour and underperform their peers.

Investors like to look for stocks that have attracted too much attention in the market. These stocks have been sold to the extent that sellers are increasingly scarce. The implication is that these stocks are likely to rebound.

In technical analysis, this condition is called 'oversold'.

How does one know if the stock is oversold or overbought? We can find out with the help of RSI (Relative Strength Index).

Created by Welles Wilder, the RSI tells us if an index or a stock is overbought or oversold.

This technical indicator has a reading from 0 to 100. If the RSI is 70 or higher, the security is overbought. If the RSI comes near 30 or below, it's oversold.

But remember, like most investing tools, the RSI has its limitations. So you should combine RSI with other indicators to get a better picture. This can help cut down your margin of error.

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Is it finally time to get in these oversold stocks in India?

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The Most Oversold Stocks in India. Is it Finally Time to Get in?

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With the help of relative strength index (RSI), we take a look at top stocks that are oversold at current levels.

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Is the Nifty forming a short-term top?