Praj Industries and 8 other smallcaps signal overbought state as RSI crosses 70​

RSI, a momentum indicator, gives short-term buy and sell signals and helps determine a stock’s overbought and oversold state. It is the ratio of the recent upward price movement to the absolute price movement. The value of RSI ranges between 0-100. The data computes the value of RSI by taking 14 days as the reference period.

So, here are major stocks with m-cap over Rs 10,000 crore whose RSIs have crossed the 70 mark, suggesting an overbought state. Typically, this situation hints at a sell signal on the counter. Note: The data is from the previous day. (Source: StockEdge)

​Overbought refers to a condition wherein the stock has been subjected to constant upward pressure, and now the technical analysis hints at correction in due course. Constant pressure results in continued bullishness, which is considered unreasonable by traders. When this is the case, such an asset is said to be overbought, and traders then bet on the reversal in price trend.

​RSI on September 5: 75.43 | Last closing price: Rs 258.45

​RSI on September 5: 74.55 | Last closing price: Rs 2172.45

​RSI on September 5: 74.15 | Last closing price: Rs 79.35

​RSI on September 5: 74.09 | Last closing price: Rs 558.9

​RSI on September 5: 73.77 | Last closing price: Rs 527.35

​RSI on September 5: 73 | Last closing price: Rs 2757.4

​RSI on September 5: 71.98 | Last closing price: Rs 174.35

​RSI on September 5: 70.85 | Last closing price: Rs 873.55

​RSI on September 5: 70.56| Last closing price: Rs 1460