Midcap stocks trading in RSI overbought zone

Relative Strength Index (RSI) is one of the widely used momentum indicator by market participants. Read on to find out mid-cap stocks that are trading in the RSI’s overbought zone.

 Nifty 50 is presently resisting near the 18,000 levels. The price range of 18,000 to 18,600 would act as crucial resistance for Nifty 50. Breaching these levels would likely bring bulls in power. Having said that, the price has breached its downward channel of lower tops and lower bottoms. Although the index has shown signs of recovery, people should trade with caution. Even the global cues, the restrictions amid the spread of omicron and quarterly earnings are likely to restrict the up move.

In the present market situation, a stock-specific view is advisable. There are various factors to consider while selecting stocks such as market cap, volumes, moving averages, etc. However, checking momentum indicators such as the Relative Strength Index (RSI) would definitely help you screen stocks.

RSI is an indicator that helps you measure the magnitude of recent price changes to evaluate overbought or oversold situations. RSI is usually displayed as a line graph on a scale of 0 to 100 which moves between two extremes. It is believed that stocks with an RSI of 70 or above suggest overbought or overvalued conditions and probably signal for a trend reversal or correction. On the flip side, an RSI of 30 or below suggests an oversold or undervalued situation.

Below is the list of midcap stocks that are presently trading in RSI’s overbought zone.