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Mindtree, Sunteck Realty: 10 stocks showing a positive trend on the RSI

Exiting oversold territory
It has bene an eventful first half for the stock market. The S&P BSE Sensex and the Bufty50 scaled past the 40,000 and 12,000 levels, respectively for the first time ever. On a year-to-date basis, both these indices have surged around 9 per cent each.

However, the mid-and small-cap segments have failed to deliver. While the frontline benchmarks have slipped marginally from the record high levels seen earlier this calendar year, the S&P BSE Mid-cap and S&P BSE Small-cap indices have lost 3.8 per cent and 3.1 per cent, respectively.

Among the BSE 500 stocks, the selloff has been quite sharp with stocks like Reliance Communication (RCom), Reliance Power (RPower), Jet Airways, HEG, Jaiprakash Associates and Jain Irrigation slipping 58 per cent to 91 per cent during ths period.


In some cases, the selloff has been overdone. These stocks, as per their technical chart pattern and the Relative Strength Index (RSI) indicator, have exited the oversold territory.

RSI was developed by J. Welles Wilder Jr. with the intention to measure the magnitude of price change to determine overbought and oversold territory. The indicator reads from 0-100, with a level scaling above 70 being termed as 'overbought' and below 30 as 'oversold'. 

As price enters these territories, one can determine the overall sentiment and can even analyse the next possible trend. As the prices falls below 70 levels on the RSI, one can expect the stock to lose the upward momentum. Similarly, as prices climb above 30 level on the RSI, a beginning of positive momentum can be expected.

Here are the stocks that have exit the oversold territory

Karur Vysya Bank Ltd.
Laurus Labs Ltd.
MindTree Ltd.
Rupa & Company Ltd.
Sharda Cropchem Ltd
S H Kelkar and Company Ltd.
SREI Infrastructure Finance Ltd.
Sunteck Realty Ltd.
United Bank of India

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