Maruti, Coal India among 49 stocks trading in oversold territory, shows RSI

A sudden fall in the benchmark indices has taken a toll on several stocks. Scrips such as Bajaj Finserv, Punjab National Bank, Mindtree and now Titan Company have made the investors jittery after collapsing over 10 per cent in just two sessions.

In the last two sessions, the benchmark indices Nifty50 and S&P BSE Sensex have tumbled over 450 points and 1,200 points, respectively. Some of the Budget proposals have disrupted the market trend generating fear among investors. This impact is likely to persist as the recovery seems fragile.

On Nifty 500 index, 49 stocks are trading in the oversold territory on RSI (Relative Strength Index). This indicator reflects the strength, eventually identifying bullish and bearish trend. It measures the speed and movement of price change. It is an oscillator that moves within zero to 100 range, basically notified as overbought above 70 reading and oversold below 30 reading.

RSI reflects opportunities of Buy and Sell whenever a stock/index exhibits a decent formation. A stock entering overbought territory indicates possibilities of profit booking or holding positions with proper stop loss. Similarly, an oversold position reflects Exit, avoid or reversal under the consolidation phase.

 
Here is the list of stocks from NSE500 index which are trading in oversold territory

Oversold, source: spidersoftware