Last Updated on Nov 8, 2024 by Vanessa Sequeira
In the world of stock analysis, the term ‘RSI’ has gained significant popularity. It may make you wonder, ‘What is RSI in the stock market?’. The relative strength indicator (RSI) is a popular technical indicator that measures the momentum and speed of stock price movements. When the RSI of any stock drops below 30, it suggests that the stock may be oversold and due for a rebound. Low RSI stocks may present an opportunity for investors and traders to buy the security at a discounted price. In this article, let’s look at stocks with RSI below 30.
Table of Contents
List of Stocks with RSI Below 30
| Name | Sub-Sector | Market Cap (in Cr.) | Close Price (Rs.) | PE Ratio | RSI – 14D |
| Bharti Airtel Ltd | Telecom Services | 9,56,245.62 | 1,598.80 | 128.06 | 18.84 |
| Hindustan Unilever Ltd | FMCG – Household Products | 5,87,562.29 | 2,500.70 | 57.17 | 21.68 |
| Titan Company Ltd | Precious Metals, Jewellery & Watches | 2,81,818.71 | 3,177.05 | 80.61 | 25.64 |
| Coal India Ltd | Mining – Coal | 2,68,571.70 | 435.80 | 7.18 | 23.81 |
| Siemens Ltd | Conglomerates | 2,51,086.32 | 7,050.60 | 128.05 | 27.63 |
| Trent Ltd | Retail – Apparel | 2,47,257.53 | 6,955.45 | 166.30 | 16.34 |
| Indian Oil Corporation Ltd | Oil & Gas – Refining & Marketing | 2,04,207.23 | 144.61 | 4.89 | 25.41 |
| Interglobe Aviation Ltd | Airlines | 1,56,913.14 | 4,061.95 | 19.20 | 21.92 |
| ABB India Ltd | Heavy Electrical Equipments | 1,51,812.22 | 7,164.05 | 122.23 | 13.44 |
| CG Power and Industrial Solutions Ltd | Heavy Electrical Equipments | 1,10,891.81 | 725.50 | 77.71 | 24.23 |
Note: The stocks with RSI less than 30 are sorted using the below-mentioned parameters on Tickertape Stock Screener on 7th November 2024.
- RSI – 14D: Set the higher limit to 30 – Sort from lowest to highest
Note that these stocks are in no order of preference. Please note that these stock selection criteria and the stocks are provided for informational purposes only; it is essential to conduct your own research.
🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.
Overview of the Stocks with RSI Below 30
Here are brief overviews of the below 30 RSI stocks listed above:
Bharti Airtel Ltd
Bharti Airtel is a leading telecom player in India, known for its vast subscriber base and expansive network. The company is poised for substantial growth, with expected earnings growth of 156.50% for the coming year, a notable increase compared to its 3-year CAGR of 0.00%. Over the past five years, Bharti Airtel’s revenue has increased at a yearly rate of 12.31%, outperforming the industry average of 7.49%.
Hindustan Unilever Ltd
A dominant force in India’s FMCG sector, Hindustan Unilever commands a strong portfolio of brands across personal care, home care, and food. The stock below RSI 30 is expected to return 15.97% from its current price, outpacing its 3-year CAGR of 6.09%. Revenue growth over the past five years has been consistent at a yearly rate of 9.55%, closely aligned with the industry average of 9.52%.
Titan Company Ltd
Known for its jewellery, watches, and eyewear, Titan is a popular consumer goods company in India with a strong brand appeal. The company has demonstrated impressive growth, with a yearly revenue increase of 20.93% over the last five years, compared to the industry average of 10.25%. Net income has also grown at a robust yearly rate of 20.01%, outperforming the industry’s 8.21%.
Coal India Ltd
As the largest coal producer in the world, Coal India plays a critical role in India’s energy sector. The company boasts a solid financial position, with an ROE of 51.52% and a strong net profit margin of 24.82%. With a substantial market capitalisation of ₹2,68,571 crore, Coal India demonstrates significant investor confidence, and its stock recently closed at ₹424.05 as of 8th November 2024.
Siemens Ltd
Siemens operates in various segments, including energy, healthcare, and automation, making it a versatile player in India’s industrial sector. Financially, this stock below 30 RSI maintains a healthy net profit margin of 9.77%, underscoring its operational efficiency in a competitive landscape.
Trent Ltd
Trent, a prominent retail company under the Tata Group, is known for its retail chains such as Westside and Zudio. The company’s growth prospects are bright, with expected earnings growth of 14.05% for the coming year, above its 3-year CAGR of 0.00%. Its revenue has grown at an impressive 37.99% yearly rate over the last five years, surpassing the industry average of 20.39%.
Indian Oil Corporation Ltd
As India’s largest public sector oil company, Indian Oil has a significant presence in refining and fuel marketing. Over the past five years, its net income has grown at a yearly rate of 19.15%, higher than the industry’s 17.55%, and it has maintained a respectable ROE of 25.19%.
Interglobe Aviation Ltd
Known for its airline IndiGo, Interglobe Aviation dominates the Indian aviation market. Over the last five years, the company’s revenue has grown at a yearly rate of 19.02%, higher than the industry average of 15.19%. It has also expanded its market share substantially from 47.42% to 88.73%.
ABB India Ltd
ABB India, a leader in industrial technology and automation, has a strong financial footing, reflected by an ROE of 22.82% and a net profit margin of 11.56%, showcasing its profitability within the sector. With a market capitalisation of ₹1,51,812 crore, ABB India is well-positioned in the industry, and its stock recently closed at ₹7,045.45 (as of 8th November 2024) underlining its market resilience and value.
CG Power and Industrial Solutions Ltd
Specialising in electrical equipment and engineering services, CG Power has shown resilience with a yearly revenue growth rate of 1.7% over the last five years, above the industry’s 0.22%. The company has worked to reduce its debt, reflected in its unique debt-to-equity ratio of -372.74%, compared to the industry average of 32.69%.
What are Stocks with RSI Below 30?
Stocks with an RSI (Relative Strength Index) below 30 are considered oversold. The RSI measures a stock’s price momentum. When the RSI drops below 30, it often suggests that the stock may be undervalued and could potentially rebound. For investors and traders, these low RSI stocks might offer a chance to buy stocks at a lower price.
How to Invest in Stocks with RSI Below 30
Investing in oversold stocks with an RSI below 30 can be approached effectively using Tickertape, a comprehensive tool for stock analysis. Here’s an overview of how this process works:
Tickertape offers a range of features to help investors identify stocks with low Relative Strength Index (RSI) values. The RSI, a momentum oscillator, measures the speed and change of price movements, with an RSI below 30 typically indicating that a stock might be undervalued or oversold.
- Starting with Tickertape: Users first need to create an account or log in to Tickertape. Once set up, they can access the Tickertape Stocks Screener, where they can apply the RSI-14D filter. Setting the upper limit to 30 will display a list of stocks with an RSI below this threshold. You can then sort the stocks in descending order of RSI 14-D and generate a list of stocks with RSI below 30.
- Utilising Filters: Tickertape provides over 200 filters that allow users to sort stocks based on various criteria such as market cap, P/E ratio, and dividend yield. Custom filters can also be created to refine the search according to specific investment preferences.
- Analysing Stock Data: Each stock listed comes with detailed information, including financial performance, metrics, and future projections. This data helps investors evaluate the financial health and growth potential of each stock.
- Monitoring and Investing: Investors can track promising stocks by adding them to a watchlist and place buy orders through their brokerage accounts linked to Tickertape. Additionally, the Tickertape ‘Alerts’ and portfolio analysis features can keep investors informed about stock performance and potential issues.
This approach enables investors to make informed decisions based on comprehensive stock data and analysis tools provided by Tickertape. Get a detailed analysis of your portfolio now!
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Features of Stocks with RSI Below 30
Here are a few key features of stocks with an RSI below 30:
- Oversold Conditions: Stocks under 30 RSI indicates that a stock has experienced significant selling pressure, making it likely oversold. This means that the price has dropped considerably, potentially more than justified by the stock’s fundamentals.
- Potential for Price Reversal: When RSI levels fall this low, it can indicate a slowing of selling momentum, hinting at a possible reversal or bounce-back in the stock’s price as buyers might start to enter the market.
- Increased Volatility: Shares with RSI below 30 often exhibit higher volatility. This reflects the rapid shifts in investor sentiment, where sudden price changes are more common.
- Mean Reversion: These stocks may be considered for mean reversion strategies, where it is expected that the price will eventually move back towards its historical average, given that the current price may be an anomaly.
Benefits of Investing in Stocks with RSI Below 30
Here are some potential benefits of investing in stocks with an RSI below 30:
- Potential for Price Recovery: Stocks in the NIFTY 500 with an RSI below 30 are often oversold, indicating potential for price recovery. When market conditions improve, these stocks can experience sharp price increases, offering profit opportunities.
- Opportunity for Lower Purchase Prices: Buying shares at or near their low RSI levels allows investors to purchase at more attractive prices. As the stock recovers, this can lead to increased profit margins.
- Indicator of Market Sentiment: An RSI below 30 may suggest that a stock is undervalued due to temporary market pessimism. As sentiment shifts, it can create a buying opportunity.
- Balancing Risk and Reward: Targeting oversold stocks can optimise the risk-reward ratio, with limited downside and greater upside potential.
- Clear Entry Points: This strategy offers clear, technical entry points, reducing the guesswork in market timing and simplifying investment decisions. However, it’s important to consider other factors beyond RSI when evaluating stocks.
- Enhanced Portfolio Diversification: Adding low RSI stocks to a portfolio can help spread risk across different assets. It can reduce overall portfolio volatility.
Who Should Invest in Stocks with RSI Below 30?
Here are a few types of investors who may find stocks with an RSI below 30 appealing:
- Value Investors: Value investors search for undervalued stocks that have potential to rebound. They look for opportunities where the market has overreacted, aiming to benefit as the stock recovers. An RSI below 30 can suggest that a stock is oversold, making it an attractive option for these investors.
- Technical Traders: Technical traders use analysis to guide their decisions and often find stocks with an RSI below 30 enticing. This indicator signals potential buying opportunities, fitting strategies that capitalise on momentum shifts. A low RSI suggests the possibility of an upward movement, aligning with their goal of profiting from price changes.
- Risk-Tolerant Investors: Investors with a higher tolerance for risk, focusing on short to medium-term gains, might be drawn to low RSI stocks. These investors are comfortable with volatility and rapid price changes, seeking higher returns. The potential for significant price rebounds in oversold stocks can offer substantial rewards for those willing to take on the risk.
Risks of Investing in Stocks with RSI Below 30
Here are some potential risks of investing in stocks with an RSI below 30:
- Misleading Signals: An RSI below 30 can suggest a buying opportunity, but it may also reflect underlying weakness in the stock. This could result in investing in a stock that continues to decline.
- Delayed Recovery: Although a low RSI sometimes indicates a potential rebound, broader market conditions or company-specific issues can delay recovery. This can lead to extended periods of poor performance.
- High Volatility: Stocks with an RSI below 30 can often experience high volatility, causing significant short-term price swings. This may be unsuitable for investors with low risk tolerance or a short investment horizon.
Factors to Consider When Investing in Stocks With RSI Below 30
Here are some key factors to understand when evaluating stocks with an RSI below 30:
- Market Conditions: A low RSI can sometimes indicate not just a specific stock’s situation, but also a broader market downturn. Observing overall market trends can provide context for why a stock’s RSI might be low.
- Stock Fundamentals: Examining the fundamentals of the stock can reveal whether the low RSI is due to temporary factors or underlying business challenges. Understanding these fundamentals can help in assessing the stock’s long-term potential.
- Historical Performance: Analysing past RSI trends and the stock’s historical performance can offer insights into how the stock has behaved in similar situations. This analysis can be useful in anticipating possible future movements.
- Volatility: Stocks with an RSI below 30 often exhibit higher volatility, which means they can be more unpredictable. Recognising this characteristic can be helpful in managing expectations and considering appropriate risk management strategies.
- Investment Horizon: Low RSI levels might not result in immediate price rebounds. Understanding this can be important for those with a longer-term investment horizon, as patience may be required.
- Diversification: Considering how an investment in a stock with a low RSI fits into an overall investment strategy is essential. It’s also important to consider how this investment contributes to portfolio diversification, which can help mitigate concentrated risks.
To conclude,
RSI below 30 can indicate early warning signals, oversold conditions, confirmation of other technical indicators, mean reversion strategies, risk management, and more. However, it is crucial to consider other technical parameters before making any trading or investment decision. Remember, RSI is generally used with other technical and fundamental parameters to confirm the oversold signals and make an informed decision. A thorough analysis can be your non-negotiable step before finalising any stock for investing. For this purpose, Tickertape offers various solutions, including a stock screener with over 200 filters, an option to create your custom filter, pre-built screens, and export data for further analysis. Read this blog to learn more about how to use Tickertape Stock Screener effectively.
Frequently Asked Questions (FAQs) About Stocks with RSI Below 30
1. Which stocks have RSI below 30?
Here is a list of stocks with RSI-14D below 30. The RSI-14D was sorted from lowest to highest:
AVSL Industries Ltd
Blue Coast Hotels Ltd
Cadsys (India) Ltd
Bright Solar Ltd
CMI Ltd
Note: The data on this RSI below 30 stock list was taken on 7th November 2024.
2. What is RSI?
The Relative Strength Index (RSI) is a technical tool used to assess the momentum of an asset’s price, commonly applied to stocks, indices, and ETFs. As a momentum oscillator, RSI tracks the speed and extent of price movements, fluctuating between zero and 100.
3. Which RSI value is best?
The Relative Strength Index (RSI) ranges from 0 to 100. Readings above 70 typically suggest that a stock may be overbought, while readings below 30 often indicate it may be oversold. However, it is important to note that as the RSI gauges recent price changes, it can sometimes produce false signals, especially after abrupt price shifts.
4. Which RSI value indicates a bullish market?
When the RSI crosses 30, it often signals a potential bullish trend. Conversely, when it crosses 70, it may indicate a bearish trend. In simpler terms, an RSI reading of 70 or above suggests that a security could be overbought or overpriced.
5. What is the difference between RSI and MACD?
RSI and MACD are essential tools for technical traders. RSI helps identify when the market is overbought or oversold, particularly in range-bound conditions. In contrast, MACD is more effective in trending markets, as it highlights shifts in momentum and trends.
6. Are there any penny stocks with RSI below 30?
Here is a list of penny stocks with RSI below 30:
Blue Coast Hotels Ltd
Bright Solar Ltd
CMI Ltd
Compuage Infocom Ltd
Dhanuka Realty Ltd
Note: The data on this list was taken on 7th November 2024.
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
