Stocks with RSI Below 30 and What it Means

In stock analysis, the Relative Strength Indicator (RSI) is a widely used technical tool that measures the momentum and speed of stock price movements. When a stock’s RSI falls below 30, it indicates that the stock may be oversold and could be poised for a rebound. This situation might present an opportunity for investors to purchase the stock at a lower price. Let’s explore stocks with an RSI below 30 and understand what this means for investors.

Stocks with RSI Below 30 in NIFTY

Here is a list of the top 10 stocks with RSI 14-D below 30:

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data in the list of stocks with RSI below 30 is dynamic and subject to real-time changes. The stocks are filtered using Tickertape Stock Screener on 8th January 2025 using the following filters:

• Stock Universe: NIFTY 500
• RSI – 14D: Set the higher limit to 30 – Sort from lowest to highest

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

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Overview of the Stocks with RSI Below 30

Here are brief overviews of the RSI below 30 NIFTY 500 stocks listed above: 

Grindwell Norton Ltd

Grindwell Norton Ltd operates in the industrial machinery sub-sector and is a leading player in the abrasives and ceramic materials industry. The company was established in 1941 and is a subsidiary of Saint-Gobain, a French multinational. It specialises in abrasives, silicon carbide, high-performance refractories, and performance plastics. The firm caters to industries such as automotive, construction, and general engineering.

Grindwell Norton Ltd has a market capitalisation of Rs. 20,486.52 cr. and a closing price of Rs. 1850.30. The price-to-earnings (PE) ratio is 53.40, and its Relative Strength Index (RSI) for 14 days stands at 6.22.

Prestige Estates Projects Ltd

Prestige Estates Projects Ltd is a prominent player in the real estate sector, focusing on residential, commercial, and hospitality projects. Founded in 1986 and headquartered in Bengaluru, the company is well-known for its premium offerings in the Indian real estate market.

Prestige Estates Projects Ltd has a market capitalisation of Rs. 67,564.34 cr. and a closing price of Rs. 1568.60. The PE ratio is 49.17, and its RSI for 14 days is 7.59.

Astral Ltd

Astral Ltd, founded in 1996, operates in the building products and pipes sub-sector. The company is known for its innovative plumbing and drainage systems and has diversified into adhesives and water tanks. Astral Ltd has a strong market presence in India and overseas.

Astral Ltd has a market capitalisation of Rs. 41,725.69 cr. and a closing price of Rs. 1553.25. The PE ratio stands at 76.41, and the RSI for 14 days is 9.43.

Tata Elxsi Ltd

Tata Elxsi Ltd, a subsidiary of the Tata Group, is a leader in software services with expertise in design and engineering solutions. Established in 1989, it serves industries like automotive, media, and healthcare with cutting-edge technology solutions.

Tata Elxsi Ltd has a market capitalisation of Rs. 40,319.12 cr. and a closing price of Rs. 6473.50. The PE ratio is 50.89, and its RSI for 14 days is 13.38.

PVR INOX Ltd

PVR INOX Ltd is a major player in the Indian multiplex and cinema industry, known for its high-end theatre experiences. It was formed after the merger of PVR Cinemas and INOX Leisure in 2023, combining their extensive network of screens across the country.

PVR INOX Ltd has a market capitalisation of Rs. 11,564.22 cr. and a closing price of Rs. 1177.70. The company currently has a negative PE ratio of -361.38 and an RSI for 14 days at 13.52.

Ratnamani Metals and Tubes Ltd

Ratnamani Metals and Tubes Ltd, established in 1983, operates in the building products and pipes segment. The company is renowned for manufacturing stainless steel and carbon steel pipes and tubes, catering to industries such as oil and gas, power, and chemicals.

Ratnamani Metals and Tubes Ltd has a market capitalisation of Rs. 21,944.40 cr. and a closing price of Rs. 3130.80. Its PE ratio is 35.24, and the RSI for 14 days is 14.22.

JSW Energy Ltd

JSW Energy Ltd, part of the JSW Group, operates in the power generation sector. Founded in 1994, the company is engaged in thermal, hydro, and renewable energy projects, with a focus on expanding its green energy portfolio.

JSW Energy Ltd has a market capitalisation of Rs. 1,01,101.01 cr. and a closing price of Rs. 579.35. The PE ratio is 58.69, and its RSI for 14 days is 15.14.

CCL Products (India) Ltd

CCL Products (India) Ltd, established in 1994, specialises in the manufacturing and export of instant coffee. The company is a global supplier and is known for its high-quality customised blends.

CCL Products (India) Ltd has a market capitalisation of Rs. 9,170.03 cr. and a closing price of Rs. 686.75. Its PE ratio is 36.67, and the RSI for 14 days is 15.53.

Godrej Properties Ltd

Godrej Properties Ltd, a subsidiary of the Godrej Group, operates in the real estate sector. The company, established in 1990, is known for developing residential, commercial, and township projects with a focus on sustainability and innovation.

Godrej Properties Ltd has a market capitalisation of Rs. 77,230.98 cr. and a closing price of Rs. 2564.25. The PE ratio stands at 106.49, and the RSI for 14 days is 16.00.

Siemens Ltd

Siemens Ltd, a subsidiary of Siemens AG, operates as a diversified conglomerate with expertise in industrial automation, electrification, and smart infrastructure. Founded in 1922, the company is a leader in bringing advanced technology solutions to India.

Siemens Ltd has a market capitalisation of Rs. 2,24,236.62 cr. and a closing price of Rs. 6296.65. The PE ratio is 82.54, and its RSI for 14 days is 16.07.

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How to Invest in Stocks with RSI Below 30?

Here is how an investor may go about investing in oversold stocks or stocks with RSI below 30:

1. Open a demat/trading/brokerage account. Investors can open a demat account with smallcase!

2. Choose the stocks with RSI-14 below 30.

3. Investors can utilise online tools like the Tickertape Stocks Screener to search for stocks with RSI below 30. They can also use the available 200+ filters to analyse these stocks. 

4. Place a ‘Buy’ order on the stocks of your choice. 
Note: Below 30 RSI stocks can often signal oversold conditions and can complement other technical indicators. While it may suggest potential opportunities, evaluating additional technical and fundamental factors is also important before making trading or investment decisions. Combining RSI with other analyses can lead to a more informed choice.

What are Stocks with an RSI Below 30?

These stocks have an RSI 14 level below 30. The RSI, or Relative Strength Index, is a technical indicator that assesses the momentum of a stock’s price movement. An RSI below 30 typically signals that the stock is oversold, which may indicate a potential rebound. For investors and traders, low RSI stocks can present an opportunity to buy these stocks at a discounted price.

Features of Stocks with RSI Below 30

Here are a few key features that stocks with RSI below 30 might exhibit:

• Oversold Conditions: An RSI below 30 suggests that a stock has experienced significant selling pressure, which might indicate it is oversold.
• Potential Price Reversal: Such low RSI levels can signal a possible reversal or bounce-back in stock price as the selling momentum may be slowing down.
• Increased Volatility: Stocks under 30 RSI can often show higher volatility. This can reflect rapid changes in investor sentiment.
• Mean Reversion: These stocks might be candidates for mean reversion strategies, where the price is expected to move back towards its historical average.

Why To Invest in Stocks With Daily RSI Below 30?

Stocks with an RSI (Relative Strength Index) below 30 are often referred to as “oversold.” This may indicate that the stock price has declined significantly due to increased selling pressure. However, it is essential to interpret this signal carefully, as a low RSI does not always guarantee a price rebound.

The RSI indicator uses a range between 0-100 to evaluate price momentum:

• Above 70: Overbought conditions.
• Below 30: Oversold conditions.

Daily RSI levels provide short-term insights into stocks’ momentum. For instance, Nifty 50 stocks RSI below 30 might reflect temporary undervaluation. Tracking these trends can offer a glimpse into potential reversal opportunities, but it is equally important to pair this with other technical or fundamental analysis.

Some investors monitor weekly RSI below 30 or monthly RSI below 30 to capture broader market trends. Stocks showing low RSI values over extended periods could suggest prolonged selling pressure, possibly due to external market factors or sector-specific challenges.

By keeping an eye on stocks below RSI 30, especially those with strong fundamentals, you may identify opportunities where the selling pressure might ease, and prices might stabilise or recover.

Who Should Invest in Stocks with RSI Below 30?

Here are a few types of investors who might find stocks with RSI below 30 interesting:

• Value Investors: Value investors look for undervalued stocks that might rebound. They spot opportunities where the market has overreacted, aiming for gains as the stock recovers. An RSI below 30 can indicate that a stock is oversold, making it an attractive opportunity for these investors.
• Technical Traders: Technical traders rely on analysis to make decisions and find stocks with an RSI below 30 appealing. This indicator signals potential buying opportunities, fitting strategies that exploit momentum shifts. A low RSI suggests a potential upward movement, which aligns with their goal of capitalising on price changes.
• Risk-Tolerant Investors: Investors with a higher risk tolerance, focusing on short to medium-term gains, might benefit from low RSI stocks. They are comfortable with volatility and rapid price changes in pursuit of higher returns. The potential for significant price rebounds in oversold stocks can offer substantial rewards for those willing to take the risk.

Benefits of Investing in Stocks with RSI Below 30

Here are a few potential benefits of investing in stocks with RSI below 30:

• Potential for Price Recovery: RSI below 30 NIFTY 50 stocks are often oversold. When the market corrects, this can lead to sharp price increases, which can offer significant profit opportunities.
• Opportunity for Lower Purchase Prices: Purchasing shares at or near their low RSI levels can allow investors to buy at more attractive prices. This can increase the margin of profit as the stock recovers.
• Indicator of Market Sentiment: An RSI below 30 can indicate that a stock may be undervalued due to temporary pessimism. This sentiment may change, which can present a buying opportunity.
• Balancing Risk and Reward: Targeting potentially oversold stocks can optimise the risk-reward ratio. This is because the downside may be limited compared to the upside potential.
• Clear Entry Points: This strategy provides clear, technical-based entry points. This can reduce guesswork in timing the market and make investment decisions more straightforward. However, investors should consider factors other than RSI when assessing these stocks. 
• Enhanced Portfolio Diversification: Including low RSI stocks in a portfolio can spread risk across different assets, reducing the overall portfolio volatility.

Risks of Investing in Stocks with RSI Below 30

Here are a few potential risks of investing in stocks with RSI below 30, especially in today’s market:

1. Misleading Signals: The RSI can indicate a buying opportunity when a stock is actually weak. This can lead to investments in low RSI stocks in Nifty 500 or oversold stocks RSI below 20, which may continue to decline instead of recovering.
2. Delayed Recovery: A stock’s RSI being below 30 sometimes means that it will quickly rebound. However, market conditions or specific company issues, such as those seen with green power share or oversold stocks NSE, can delay or prevent recovery, ultimately causing prolonged poor performance.
3. High Volatility: Stocks with RSI below 30 today often experience high volatility, leading to significant short-term price swings. Investors may find that even lowest RSI stocks or low RSI stocks right now are not suitable for those with low risk tolerance or a short investment horizon.

Should You Invest in Stocks With Daily RSI Below 30?

Investing in stocks with low RSI can be intriguing, especially when examining Nifty 50 RSI below 30 or stocks below 30 RSI today. The RSI range, which typically spans from 0 to 100, helps assess momentum. Stocks with RSI less than 30 or RSI under 30 stocks are considered oversold, possibly indicating potential price reversals. However, understanding whether the decline is due to broader market trends or company-specific issues is essential.

For instance, Nifty 50 RSI below 30 stocks or RSI low stocks in Nifty 500 might reflect temporary undervaluation or market-wide bearish sentiment. Meanwhile, stocks with extremely low RSI, such as RSI below 20 stocks in NSE or below 20 RSI stocks, highlight severe oversold conditions that require closer scrutiny. You can also explore a list of stocks with RSI below 20, including RSI below 20 Nifty 50 stocks, to identify such opportunities.

In sectors like green energy, monitoring the RSI of green power or green power RSI might reveal oversold stocks that align with sector-wide corrections. Similarly, stocks showing RSI below 40 can indicate an early stage of overselling. Whether it’s RSI oversold stocks, RSI 30 stocks, or even stocks with RSI below 10, analysing such trends might help you spot potential entry points in the market.

Factors to Consider When Investing in Stocks with RSI Below 30

Here are a few key factors that may be worth considering when investing in stocks with RSI below 30:

• Market Conditions: Investors can check the overall market trends. A low RSI might reflect broader market declines and not just a specific stock’s potential recovery.
• Stock Fundamentals: Investors can review the stock’s fundamentals to confirm that its low RSI isn’t due to worsening business conditions. This could prevent investors from running into further declines.
• Historical Performance: Investors can analyse past RSI trends and stock performance to understand how it has behaved in similar situations. This can provide an insight into possible future movements of shares with RSI below 30.
• Volatility: Investors can prepare for increased volatility. A stock below RSI 30 can be more unpredictable. Therefore, investors can implement risk management strategies, such as stop-loss orders.
• Investment Horizon: Investors can assess whether they can hold the stock through short-term fluctuations. This is because low RSI levels might not lead to immediate rebounds.
• Diversification: Investors can ensure that investing in a stock below 30 RSI aligns with their overall investment strategy and helps diversify their portfolio. This can avoid excessive risk concentration.

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To Wrap It Up…

Stocks with an RSI below 30 can signal oversold conditions and potential buying opportunities, but they should not be evaluated in isolation. Such signals can serve as early warnings or confirmations of broader market trends and technical indicators. However, relying solely on RSI can be insufficient. Hence, it can be crucial to integrate this information with other technical and fundamental parameters to make well-informed decisions. Understanding RSI’s limitations and combining it with thorough research and risk management strategies can enhance your investment approach. By adopting a comprehensive analysis, investors can better navigate the complexities and risks associated with these stocks, potentially capitalising on their rebound opportunities while mitigating potential downsides.

Frequently Asked Questions About Stocks with RSI Below 30