Oversold Alert: 5 stocks with RSI around 15; Colgate tests 20-year support

Asian Paints, Aurobindo Pharma, AIA Engineering, Delhivery and Colgate-Palmolive stocks were trading in oversold zone, the daily chart shows. Here are the key levels to track.

With the benchmark indices - the BSE Sensex and the NSE Nifty 50, technically, having entered a correction zone following the over 10 per cent decline from the all-time highs, several stocks across too have witnessed a steep fall and now seem to be trading in oversold territory on the daily chart.  Technically, an overbought or oversold territory is determined by the leading momentum indicator namely - Relative Strength Index (RSI). The RSI is plotted on the chart on a scale from 0 to 100; a reading above 70 implies overbought condition, while a reading below 30 means oversold.  The 14-day RSI of Nifty 50 at present reads below 30; thus implying an oversold condition on the daily scale. Similarly, here are 5 prominent stocks with an RSI reading below 20 - suggesting that these stocks are presently trading in a fairly oversold zone and could potentially witness a relief rally in the near term.    Against this background, here the key levels to be tracked on these 5 stocks - Colgate Palmolive, Asian Paints, Aurobindo Pharma, AIA Engineering and Delhivery.  Colgate-Palmolive  Current Price: Rs 2,738  Potential Upside: 9.5%  Support: Rs 2,730; Rs 2,500  Resistance: Rs 2,935  Colgate-Palmolive stock has plunged by almost 30 per cent from its peak of Rs 3,858 in less than two months. At present, the stock is seen trading below the key moving averages on the daily scale, at the same time testing support around the super trend line on the monthly scale, which stands at Rs 2,730.  The long-term chart shows that Colgate stock has been sustaining above this key trend line support for more than 2 decades (20 years). In case, the support is violated, the stock could dip towards the 20-MMA (Monthly Moving Average) which stands at Rs 2,500 levels. CLICK HERE FOR THE CHART  However, given the oversold condition and significance of the support, Colgate could attempt a pull-back in the near-term towards its 200-DMA (Daily Moving Average) around Rs 3,000-mark. Interim resistance for the stock is seen at Rs 2,935.    Asian Paints  Current Price: Rs 2,498  Potential Upside: 9.1%  Support: Rs 2,420  Resistance: Rs 2,600  Asian Paints stock too has plunged nearly 28 per cent from its peak in the recent fall. The daily chart shows the stock is attempting a recovery from the oversold zone, by re-entering the Bollinger-Bands. CLICK HERE FOR THE CHART  The near-term support around the lower-end of the Bollinger Bands at Rs 2,420 levels holds the key for now. On the upside, Rs 2,600 level is likely to act as an immediate hurdle. Break and sustained trade above the same can trigger a pull-back to Rs 2,725 levels.  AIA Engineering  Current Price: Rs 3,424  Downside Risk: 15.3%  Support: Rs 3,489  Resistance: Rs 3,500; Rs 3,650  AIA Engineering has tumbled 30 per cent from its high of Rs 4,877 hit in August 2024. At present, while the 14-day RSI hovers around 15 levels, the stock is seen testing support around the 100-WMA (Weekly Moving Average) which stands at Rs 3,489.  The weekly chart shows, AIA Engineering will need to break and sustain above Rs 3,500 levels for a pull-back rally to emerge; above which another key hurdle stands at Rs 3,650. For now, the bias seems negative and the stock seems on course to test its super trend line support on the monthly scale at Rs 2,900 levels. CLICK HERE FOR THE CHART  Aurobindo Pharma  Current Price: Rs 1,244  Downside Risk: 13.2%  Support: Rs 1,249  Resistance: Rs 1,275  Aurobindo Pharma is seen trading below its 200-DMA for the fourth straight trading session; whereas on the weekly scale the stock seems to be testing support around its 50-WMA (Weekly Moving Average) which stands at Rs 1,249.  Given the oversold condition, the stock can attempt a bounce towards its 200-DMA, which stands at Rs 1,275. Only break and sustained trade above the same can trigger a meaningful bounce. On the downside, the stock can potentially slide to Rs 1,080 levels. CLICK HERE FOR THE CHART  Delhivery  Current Price: Rs 328  Potential Upside: 17.4%  Support: Rs 324  Resistance: Rs 353; Rs 360  Delhivery stock needs to cross and trade consistently above Rs 330 for a pull-back rally to emerge. On the upside, the stock can potentially bounce back to Rs 385 levels; with interim resistance expected around Rs 353 and Rs 360 levels. On the downside, near support for the stock is seen around Rs 324. CLICK HERE FOR THE CHART