RIL, HCL Tech: These 7 oversold stocks are set to lead market recovery

The underneath strength, preferably read as price action, has been able to hold ground around the major neckline supports for these stocks

The recent weakness in the overall market has pushed various stocks into a bearish environment. Many of them have seen exaggerated selling pressure, and have entered in the oversold territory.

However, the underneath stock strength, preferably read as price action, has been able to hold ground around the major neckline supports. The Relative Strength Index (RSI) inevitably determines the underlying strength that drives the price towards a confirm trend. It gauges the changes in the stock price to understand the sentiment of oversold and overbought.

Similarly, candlestick formations enable investors to understand the shift in the volumes from buying to selling and vice versa. The formation like the Morning Star, Doji, Hammer, and Long Body candles exhibits a positive buying momentum, while the Bearish Engulfing, and Bearish Harami Cross shows a negative bias.

Stocks like HCL Technologies Limited and Maruti Suzuki Ltd have seen sideways accumulation with candlestick formations that resemble bullish bias.

Other stocks like Sun Pharmaceutical Industries Ltd, Reliance Industries and PowerGrid are showcasing reversal with continued effort to cross the resistance mark. This behaviour clearly exhibits the underneath positive strength.

Here is the list of stocks with respective price levels that could be seen in coming sessions:-

Source: spidersoftware