Stocks With RSI Below 30 in India (2024)

Last Updated on Aug 20, 2024 by Aishika Banerjee

In the world of stock analysis, the term ‘RSI’ has gained significant popularity. It may make you wonder, ‘What is RSI in the stock market?’. Well, the Relative Strength Indicator (RSI) is a popular technical indicator that measures the momentum and speed of price movements of stocks. When the RSI of any stock drops below 30, it suggests that the stock may be oversold and due for a rebound. Low RSI stocks may present an opportunity for investors and traders to buy the security at a discounted price. In this article, let’s look at stocks with RSI below 30. 

Note: The stocks with RSI less than 30 are sorted using the below-mentioned parameters on Tickertape Stock Screener on 19th August 2024. 

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

Note that these stocks are in no order of preference. Please note that these stock selection criteria and the stocks are provided for informational purposes only; it is essential to conduct your own research.

???? Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.

Overview of the Stocks with RSI Below 30

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

KSB Ltd

KSB Ltd, previously known as KSB Pumps Ltd, is an Indian manufacturer and seller of pumps, spares, and valves. Established in 1960, the company produces power-driven pumps, industrial valves, and cast iron or steel articles. Over the years, KSB Ltd expanded geographically, with Pune, Ahmednagar, Chinchwad, Nashik, Khandala, and Coimbatore plants. As of 19th August 2024, KSB Ltd has a market capitalisation of Rs. 15,937.64 cr., and its share price is Rs. 915.75. KSB Lts’s net income stands at Rs. 217.70 cr. for the financial year of 2023-24. 

Aegis Logistics Ltd

Aegis Logistics Limited imports and distributes Liquified Petroleum Gas (LPG) and provides storage and terminalling facilities for LPG and chemical products. This stock below RSI 30 operates storage facilities in Mumbai, Haldia, Pipavav, and Mangalore, offering a comprehensive logistics value chain from sourcing and terminating to retail distribution of LPG. As of 19th August 2024, Aegis Logistics Ltd has a market capitalisation of Rs. 26,316.23 cr. The company’s share price closed at Rs. 749.75. For the financial year of 2023-24, the company has a net income of Rs. 569.19 cr. and a return on equity (ROE) of 13.38%. 

Astral Ltd

Astral Poly Technik Limited is a leading manufacturer of Chlorinated Poly Vinyl Chloride (CPVC) and Poly Vinyl Chloride (PVC) plumbing systems for residential and industrial use. Over time, the company has expanded its product range to include adhesives, sealants, infrastructure products, and water tanks. As of 19th August 2024, Astral Ltd has a market capitalisation of Rs. 50,757.07 cr. The company’s share price closed at Rs. 1,889.50. For the financial year of 2023-24, the company has a net income of Rs. 546.10 cr., and a return on equity (ROE) of 17.54%. 

LIC Housing Finance Ltd

LIC Housing Finance Ltd (LICHFL) ranks among India’s largest housing finance companies. Its primary aim is to provide long-term finance to individuals for purchasing or constructing residential properties. Additionally, LICHFL offers loans against existing properties for business or personal needs and extends financing to professionals for setting up clinics, nursing homes, diagnostic centres, office spaces, or purchasing equipment. As of 19th August 2024, LIC Housing Finance Ltd has a market capitalisation of Rs. 36,207.90 cr. The company’s share price closed at Rs. 658.25. For the financial year of 2023-24, the company has a net income of Rs. 4,759.21 cr., and an ROE of 16.22%. 

Elgi Equipments Ltd

Elgi Equipments Limited (EEL) was established on 4th March 1960 as a Private Limited Company and became a Public Limited Company in 1975, issuing 75,000 shares. Initially promoted by L.G. Balakrishnan, his brothers, and associates, the company now specialises in manufacturing and trading air compressors and providing after-sales services. EEL’s manufacturing operations are based in Coimbatore, India. As of 19th August 2024, Elgi Equipments Ltd has a market capitalisation of Rs. 18,988.30 cr. The company’s share price closed at Rs. 600.55. For the financial year of 2023-24, the company has a net income of Rs. 311.88 cr., and an ROE of 20.92%. 

Apollo Tyres Ltd

Apollo Tyres Ltd is India’s leading tyre manufacturer, specialising in the production and sale of automobile tyres and tubes. The company operates five manufacturing plants across India, located in Cochin, Vadodara, Chennai, and Andhra Pradesh. Founded on 28 September 1972, Apollo Tyres began production at its first plant in Perambra, Kerala. Over the years, it expanded operations by commissioning a second plant in Limda, Gujarat, in 1991 and acquiring Premier Tyres in Kalamassery, Kerala, in 1995. As of 19th August 2024, Apollo Tyres Ltd has a market capitalisation Rs. 30,811.92 cr. The company’s share price closed at Rs. 485.15. For the financial year of 2023-24, the company has a net income of Rs. 1,721.86 cr., and a net profit margin of 6.74%. 

JM Financial Ltd

JM Financial Limited began as ‘J.M. Share and Stock Brokers Private Limited’, incorporated on 30 January 1986 under the Companies Act, 1956. The company transitioned to a Public Limited Company on 15 June 1988, following its promoter, J.M. Financial & Investment Consultancy Services Private Limited, gaining a similar status. On 15 September 2004, it officially became JM Financial Limited, a Public Limited Company. As of 19th August 2024, JM Financial Ltd has a market capitalisation of Rs. 8,676.20 cr. The company’s share price closed at Rs. 90.78. For the financial year of 2023-24, the company has a net income of Rs. 409.84 cr., and a net profit margin of 8.48%. 

Aptus Value Housing Finance India Ltd

Aptus Value Housing Finance India Limited, incorporated on 11 December 2009, primarily provides long-term housing finance to meet the needs of the low and middle-income segments in India. The company also offers loans against properties (LAP) for non-housing finance activities. On 31 May 2010, Aptus received its Certificate of Registration from the National Housing Bank (NHB), allowing it to begin its housing finance business without accepting public deposits. As of 19th 2024, Aptus Value Housing Finance India Ltd has a market capitalisation Rs. 15,096.46 cr. The company’s share price closed at Rs. 302.55. For the financial year of 2023-24, the company has a net income of Rs. 302.55 cr., and a net profit margin of 43.19%; 

RBL Bank Ltd

RBL Bank Limited, formerly known as Ratnakar Bank, was established in 1943 in Kolhapur, Maharashtra. Today, it’s one of India’s fastest-growing private sector banks, with an expanding presence nationwide. This stock below 30 RSI offers a broad range of banking and financial services, including wholesale and retail banking, treasury operations, and related activities. As of 19th August 2024, RBL Bank Ltd has a market capitalisation of Rs. 12,567.14 cr. The company’s share price closed at Rs. 207.11. For the financial year of 2023-24, the company has a net income of Rs. 1,259.89 cr., and a net profit margin of 8.15%. 

GMM Pfaudler Ltd

GMM Pfaudler Limited (GMMPL), formerly Gujarat Machinery Manufacturers, is a key supplier of engineered equipment and systems for critical applications in the chemical, pharmaceutical, food, and energy sectors worldwide. The company specialises in manufacturing corrosion-resistant glass-lined equipment used in these industries. It also produces Wiped Film Evaporators, Agitated Nutsche Filters, high-efficiency mixing systems, and PTFE-lined equipment. As of 19th August 2024, the company has a market capitalisation of Rs. 5,781.50 cr. The company’s share price closed at Rs. 1,286.00. For the financial year of 2023-24, the company has a net income of Rs. 178.91 cr., and a ROE of 20.03%.

Note: You can discover additional financial details about the stock by clicking here.

What are Stocks with RSI Below 30?

Stocks with an RSI (Relative Strength Index) below 30 are considered oversold. The RSI measures a stock’s price momentum. When the RSI drops below 30, it often suggests that the stock may be undervalued and could potentially rebound. For investors and traders, these low RSI stocks might offer a chance to buy stocks at a lower price.

How to Invest in Stocks with RSI Below 30

Investing in oversold stocks with an RSI below 30 can be approached effectively using Tickertape, a comprehensive tool for stock analysis. Here’s an overview of how this process works:

Tickertape offers a range of features to help investors identify stocks with low Relative Strength Index (RSI) values. The RSI, a momentum oscillator, measures the speed and change of price movements, with an RSI below 30 typically indicating that a stock might be undervalued or oversold.

1. Starting with Tickertape: Users first need to create an account or log in to Tickertape. Once set up, they can access the Tickertape Stocks Screener, where they can apply the RSI-14D filter. Setting the upper limit to 30 will display a list of stocks with an RSI below this threshold. You can then sort the stocks in descending order of RSI 14-D and generate a list of stocks with RSI below 30. 
2. Utilising Filters: Tickertape provides over 200 filters that allow users to sort stocks based on various criteria such as market cap, P/E ratio, and dividend yield. Custom filters can also be created to refine the search according to specific investment preferences.
3. Analysing Stock Data: Each stock listed comes with detailed information, including financial performance, metrics, and future projections. This data helps investors evaluate the financial health and growth potential of each stock.
4. Monitoring and Investing: Investors can track promising stocks by adding them to a watchlist and place buy orders through their brokerage accounts linked to Tickertape. Additionally, the Tickertape ‘Alerts’ and portfolio analysis features can keep investors informed about stock performance and potential issues.

This approach enables investors to make informed decisions based on comprehensive stock data and analysis tools provided by Tickertape. Get a detailed analysis of your portfolio now!

Discover Innovative Investment Strategies with smallcases! 

Did you know that you can invest in readymade stock portfolios managed by SEBI-registered experts?

But first, what exactly is a smallcase? 

What is a smallcase? 

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts. 

With over 500 smallcases to choose from, here are some of the most popular smallcases you can check out: 

Equity & Gold smallcase by Windmill Capital

Top 100 Stocks smallcase by Windmill Capital

All Weather Investing smallcase by Windmill Capital

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions. 

Disclosures for aforementioned smallcases

Features of Stocks with RSI Below 30

Here are a few key features of stocks with an RSI below 30:

• Oversold Conditions: Stocks under 30 RSI indicates that a stock has experienced significant selling pressure, making it likely oversold. This means that the price has dropped considerably, potentially more than justified by the stock’s fundamentals.
• Potential for Price Reversal: When RSI levels fall this low, it can indicate a slowing of selling momentum, hinting at a possible reversal or bounce-back in the stock’s price as buyers might start to enter the market.
• Increased Volatility: Shares with RSI below 30 often exhibit higher volatility. This reflects the rapid shifts in investor sentiment, where sudden price changes are more common.
• Mean Reversion: These stocks may be considered for mean reversion strategies, where it is expected that the price will eventually move back towards its historical average, given that the current price may be an anomaly.

Benefits of Investing in Stocks with RSI Below 30

Here are some potential benefits of investing in stocks with an RSI below 30:

• Potential for Price Recovery: Stocks in the NIFTY 500 with an RSI below 30 are often oversold, indicating potential for price recovery. When market conditions improve, these stocks can experience sharp price increases, offering profit opportunities.
• Opportunity for Lower Purchase Prices: Buying shares at or near their low RSI levels allows investors to purchase at more attractive prices. As the stock recovers, this can lead to increased profit margins.
• Indicator of Market Sentiment: An RSI below 30 may suggest that a stock is undervalued due to temporary market pessimism. As sentiment shifts, it can create a buying opportunity.
• Balancing Risk and Reward: Targeting oversold stocks can optimise the risk-reward ratio, with limited downside and greater upside potential.
• Clear Entry Points: This strategy offers clear, technical entry points, reducing the guesswork in market timing and simplifying investment decisions. However, it’s important to consider other factors beyond RSI when evaluating stocks.
• Enhanced Portfolio Diversification: Adding low RSI stocks to a portfolio can help spread risk across different assets. It can reduce overall portfolio volatility.

Who Should Invest in Stocks with RSI Below 30?

Here are a few types of investors who may find stocks with an RSI below 30 appealing:

• Value Investors: Value investors search for undervalued stocks that have potential to rebound. They look for opportunities where the market has overreacted, aiming to benefit as the stock recovers. An RSI below 30 can suggest that a stock is oversold, making it an attractive option for these investors.
• Technical Traders: Technical traders use analysis to guide their decisions and often find stocks with an RSI below 30 enticing. This indicator signals potential buying opportunities, fitting strategies that capitalise on momentum shifts. A low RSI suggests the possibility of an upward movement, aligning with their goal of profiting from price changes.
• Risk-Tolerant Investors: Investors with a higher tolerance for risk, focusing on short to medium-term gains, might be drawn to low RSI stocks. These investors are comfortable with volatility and rapid price changes, seeking higher returns. The potential for significant price rebounds in oversold stocks can offer substantial rewards for those willing to take on the risk.

Risks of Investing in Stocks with RSI Below 30

Here are some potential risks of investing in stocks with an RSI below 30:

• Misleading Signals: An RSI below 30 can suggest a buying opportunity, but it may also reflect underlying weakness in the stock. This could result in investing in a stock that continues to decline.
• Delayed Recovery: Although a low RSI sometimes indicates a potential rebound, broader market conditions or company-specific issues can delay recovery. This can lead to extended periods of poor performance.
• High Volatility: Stocks with an RSI below 30 can often experience high volatility, causing significant short-term price swings. This may not be suitable for investors with low risk tolerance or a short investment horizon.

Factors to Consider When Investing in Stocks With RSI Below 30

Here are some key factors to understand when evaluating stocks with an RSI below 30:

• Market Conditions: A low RSI can sometimes indicate not just a specific stock’s situation, but also a broader market downturn. Observing overall market trends can provide context for why a stock’s RSI might be low.
• Stock Fundamentals: Examining the fundamentals of the stock can reveal whether the low RSI is due to temporary factors or underlying business challenges. Understanding these fundamentals can help in assessing the stock’s long-term potential.
• Historical Performance: Analysing past RSI trends and the stock’s historical performance can offer insights into how the stock has behaved in similar situations. This analysis can be useful in anticipating possible future movements.
• Volatility: Stocks with an RSI below 30 often exhibit higher volatility, which means they can be more unpredictable. Recognising this characteristic can be helpful in managing expectations and considering appropriate risk management strategies.
• Investment Horizon: Low RSI levels might not result in immediate price rebounds. Understanding this can be important for those with a longer-term investment horizon, as patience may be required.
• Diversification: Considering how an investment in a stock with a low RSI fits into an overall investment strategy is essential. It’s also important to think about how this investment contributes to portfolio diversification, which can help mitigate concentrated risks.

To conclude,

RSI below 30 can indicate early warning signals, oversold conditions, confirmation of other technical indicators, mean reversion strategies, risk management, and more. However, it is crucial to consider other technical parameters before making any trading or investment decision. Remember, RSI is generally used with other technical and fundamental parameters to confirm the oversold signals and make an informed decision. A thorough analysis can be your non-negotiable step before finalising any stock for investing. For this purpose, Tickertape offers various solutions, including a stock screener with over 200 filters, an option to create your custom filter, pre-built screens, and export data for further analysis. Read this blog to learn more about how to use Tickertape Stock Screener effectively.

Frequently Asked Questions (FAQs) About Stocks with RSI Below 30