21 stocks have something to offer before they enter oversold zone on RSI

Here is the list of stocks from Nifty500 index, which have breached 60 levels on RSI and are heading towards overbought territory.

Momentum oscillator Relative Strength Index (RSI), which was developed by J Welles Wilder, explains the strength and movement of stock prices to determine the overbought and oversold regions. The oscillator moves between 0 to 100.

Theoretically, If RSI for any stock enters 70 level, it is considered as overbought zone and if it moves below 30, the stock is known to have slipped into oversold territory. It also helps to identify the trend on divergence in prices.  

In various studies, the oscillator is used to generate signal on price patterns and trendline levels. Analysts have correlated RSI with other