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

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 indicators to gauge better results.

When a stock's price approach near 70 levels, the trend starts to deteriorate and prices start to rise on a slower pace. Few stocks trade flat, while others start losing grounds.    

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

Nifty500 stocks crossing 60 levels on RSI
Company Name	Symbol	RSI Level
Adani Power Ltd.	ADANIPOWER	61.57
AIA Engineering Ltd.	AIAENG	61.18
Axis Bank Ltd.	AXISBANK	60.33
Bajaj Finserv Ltd.	BAJAJFINSV	62.53
Bharat Forge Ltd.	BHARATFORG	61.05
Cyient Ltd.	CYIENT	61.3
Elgi Equipments Ltd.	ELGIEQUIP	63.03
Endurance Technologies Ltd.	ENDURANCE	60.14
Grasim Industries Ltd.	GRASIM	60.53
Indian Oil Corporation Ltd.	IOC	64.24
India Tourism Development Corporation Ltd.	ITDC	62.2
Lakshmi Machine Works Ltd.	LAXMIMACH	60.16
Max India Ltd.	MAXINDIA	60.79
Narayana Hrudayalaya Ltd.	NH	60.45
Shriram Transport Finance Co. Ltd.	SRTRANSFIN	60.3
Supreme Industries Ltd.	SUPREMEIND	64.49
Symphony Ltd.	SYMPHONY	66.41
Tata Motors Ltd.	TATAMOTORS	62.34
UltraTech Cement Ltd.	ULTRACEMCO	63.62
WABCO India Ltd.	WABCOINDIA	62.78
Zee Entertainment Enterprises Ltd.	ZEEL	64.23

Most of the stocks that enter overbought region witness rally towards 75 – 78 and see selling pressure. The correction might not be severe; however, the trend eliminates the speed to which prices rise. 

Company Name	Symbol	RSI Level
Balrampur Chini Mills Ltd.	BALRAMCHIN	78.37
Bata India Ltd.	BATAINDIA	76.55
Greenply Industries Ltd.	GREENPLY	73
Manappuram Finance Ltd.	MANAPPURAM	74.63
Sundaram Finance Ltd.	SUNDARMFIN	71.58
Sun TV Network Ltd.	SUNTV	71.26
Swan Energy Ltd.	SWANENERGY	85.92
Tech Mahindra Ltd.	TECHM	73.2
UPL Ltd.	UPL	73.89
Wipro Ltd.	WIPRO	70.15