Chart Check: 41 Nifty F&O stocks indicate negative divergence on RSI

A positive/bullish divergence occurs when the stock price slips lower and RSI indicator starts to rise.

Technical indicator Relative Strength Index (RSI) helps to measure the momentum of the stock. The price direction is ascertained by tracking its movement. Normally, when the prices go higher, an equal amount of rise can be seen on the indicator. When it does so, the momentum seems favorable to the stock price.  

When the indicator deviates from the trend of a stock, it is said as “Divergence” on RSI reading. It is relevant to determine the divergence as it identifies the strength, momentum and even reversals occasionally. A change in a stock trend affects the sentiment and inevitably the trading