Four stocks, Ipca Laboratories, Shree Cement, JSW Cement and Oil & Natural Gas Corporation (ONGC), turned up in StockEdge’s “RSI Trending Up” scan on October 23. The scan flags shares whose price momentum has been getting stronger.
RSI stands for Relative Strength Index. It is a popular technical indicator that tracks how fast and by how much a stock’s price has been moving. A rising RSI generally suggests that buyers are gaining the upper hand and that momentum is improving.
The four names come from different parts of the market. Ipca Laboratories is a pharmaceutical company. Shree Cement and JSW Cement are both in the building materials business. ONGC is a state-run oil and gas producer.
Appearing in the scan does not amount to a recommendation to buy or sell. The reading only describes how a stock’s momentum has been shifting, and it says nothing about company earnings, valuations or how the share price may behave in the future. Investors usually look at several other indicators and at business fundamentals before taking a view on any stock.
Two cement makers showing up together is a notable feature of this list, as it points to better price momentum in more than one stock in that sector. The presence of a pharma company and an oil and gas major shows that the improving trend is not confined to a single industry.
Technical scans like this one are widely used by traders to shortlist stocks for closer study. Those who follow such screens typically combine them with other tools, such as moving averages and trading volumes, to judge whether a trend has real strength behind it.