The Relative Strength Index (RSI) is a simple indicator that shows whether a stock’s price may be too high or too low. It produces a value between 0 and 100. An RSI reading above 70 suggests the stock could be overbought, meaning its price might be due for a pullback. A reading below 30 indicates it could be oversold, which may signal a potential rebound. Traders use RSI to help pinpoint favorable moments to buy or sell based on recent price trends.
Here are a few small-cap stocks that are trading below the Relative Strength Index (RSI) Level 30
Vardhman Textiles Limited
Vardhman Textiles Limited was established in 1973 and is one of India’s leading textile manufacturers. The company specializes in producing cotton and synthetic yarns, fabrics, and garments, operating across multiple manufacturing facilities in India and exporting globally.
With a market capitalization of Rs. 11,589.32 crores on Tuesday, the stock closed at Rs. 400.70, with an RSI of 24.34, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Five-Star Business Finance Limited
Five-Star Business Finance Limited was established in 1984 and is an NBFC specializing in secured small business and mortgage loans for micro-entrepreneurs and self-employed individuals. It operates mainly in South India with a network of branches, providing collateral-backed loans to support business growth and asset creation.
With a market capitalization of Rs. 16,853.89 crores on Tuesday, the stock closed at Rs. 572.40, with an RSI of 19.76, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Praj Industries Limited
Praj Industries Limited, established in 1983 and headquartered in Pune, India, is a global leader in industrial biotechnology and engineering. It specializes in bioenergy, wastewater treatment, and critical process equipment, delivering sustainable solutions worldwide with a presence in over 100 countries.
With a market capitalization of Rs. 7,594.24 crores on Tuesday, the stock closed at Rs. 413.15, with an RSI of 14.68, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Shree Renuka Sugars Limited
Shree Renuka Sugars Limited was established in 1995 and is headquartered in Mumbai. The company is India’s largest sugar refiner and ethanol producer, operating multiple sugar mills and refineries. It focuses on sugar manufacturing, ethanol, bio-energy, and power generation, contributing significantly to India’s ethanol-blending program and renewable energy goals.
With a market capitalization of Rs. 6,015.11 crores on Tuesday, the stock closed at Rs. 28.26, with an RSI of 22.43, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Finolex Cables Limited
Finolex Cables Limited was established in 1958 and is India’s leading manufacturer of electrical and telecommunication cables. It also produces fast-moving electrical goods and offers comprehensive electrical solutions domestically and internationally.
With a market capitalization of Rs. 12,846.90 crores on Tuesday, the stock closed at Rs. 840, with an RSI of 24.13, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Action Construction Equipment Limited
Action Construction Equipment Limited was established in 1995 in Faridabad, Haryana, and is India’s leading manufacturer of material handling and construction equipment, specializing in mobile cranes, tower cranes, loaders, road construction, and agricultural machinery with extensive domestic and international presence.
With a market capitalization of Rs. 11,232.52 crores on Tuesday, the stock closed at Rs. 943.25, with an RSI of 19.63, indicating that it is in the oversold zone, offering the potential for an upside bounce.
Written By – Nikhil Naik
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