Top Stocks with RSI Below 30 in 2025

What are Stocks with an RSI Below 30?

About the Stocks with RSI Below 30

1. Trent Ltd: Trent, founded in 1952 and part of the Tata Group, focuses on fashion, lifestyle, and value retail, expanding its presence across India.
2. Olectra Greentech Ltd: Olectra Greentech, established in 1992,  works with state transport bodies and supports India’s shift towards cleaner mobility through its growing e-bus fleet.
3. Infronics Systems Ltd: Infronics Systems, founded in 2000, serves sectors like logistics, manufacturing, and retail, focusing on improving tracking, data accuracy, and operational efficiency.
4. Mukesh Babu Financial Services Ltd: Mukesh Babu Financial Services Ltd, incorporated in 1985, provides financial services including broking, advisory, and portfolio management. T
5. Themis Medicare Ltd: Themis Medicare, established in 1969, is a pharmaceutical company that focuses on therapeutic areas like pain management and anti-infectives, supported by in-house research and global partnerships.

How to Invest in Stocks with RSI Below 30?

Features of Stocks with RSI Below 30

• Strong Recent Selling Pressure: These stocks have seen sharp price declines over a short period, signalling heavy selling activity.
• Oversold Momentum Signal: An RSI below 30 places the stock in the oversold zone, meaning its recent fall is stronger than usual based on momentum indicators.
• High Price Volatility: Stocks in this zone often show increased volatility, as rapid price movements push RSI lower.
• Short-Term Bearish Trend: The momentum typically reflects a downtrend in the near term, highlighting weaker market sentiment around the stock.
• Useful for Technical Screening: RSI stocks below 30 helps traders filter stocks experiencing sharp declines, allowing closer analysis of price patterns and market behaviour.

Benefits of Investing in Stocks with RSI Below 30

• Potential Oversold Signal: Stocks with RSI below 30 show sharp recent price declines. Many traders see this zone as a point where selling may have gone too far, signalling a possible but not guaranteed short-term bounce.
• Identifies Stretched Selling: The RSI highlights conditions where selling pressure appears unusually strong compared to typical price behaviour. This helps traders understand when a stock’s downward momentum may be reaching an extreme.
• Widely Used Technical Indicator: RSI remains one of the most popular momentum tools in the market. Its widespread use makes it easier to track market sentiment, as many traders analyse the same thresholds like 30 and 70.
• Works across all stock categories: RSI applies to any listed stock, large-caps, mid-caps, small-caps, and microcaps. This makes it a versatile indicator for screening and comparing momentum across sectors and market segments.

Risks of Investing in Stocks with RSI Below 30

• False Signals: An RSI below 30 does not always lead to a price reversal. Stocks can stay in the oversold zone for a long time, especially during prolonged weakness.
• High Volatility: Stocks in the oversold range often show sharp and unpredictable price movements. This behaviour reflects market stress rather than any immediate improvement.
• Lagging Nature: RSI uses past price data, so its readings often appear after major moves. Screeners highlight these levels, but they represent what has already happened, not what will follow.
• Not a Standalone Signal: RSI offers one part of the overall picture. Traders generally observe it with other indicators to understand broader market trends and momentum shifts.

Factors to Consider When Investing in Stocks with RSI Below 30

• Reason for the Sharp Decline: A stock may enter the oversold zone due to earnings misses, negative announcements, sector-wide weakness, or broader market corrections. These events often create the momentum that pulls RSI below 30.
• Trend Direction: RSI readings behave differently depending on the prevailing trend. In strong downtrends, stocks can remain oversold for extended periods, while in stable markets, they may return to neutral zones faster.
• Market Sentiment and Sector Performance: Sentiment-driven sectors, including small caps and cyclical industries, often move quickly during market swings. Prolonged sector weakness can keep RSI levels depressed for longer durations.