RSI (Relative Strength Index): Meaning, Definition & Indian Stock Market Examples

Momentum oscillator from 0–100 — above 70 is overbought, below 30 is oversold.

Disclaimer: This article is for educational purposes only and does not constitute SEBI-registered investment advice. Consult a SEBI-registered investment advisor before making investment decisions.

What is RSI (Relative Strength Index)?

The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder that measures the speed and magnitude of price changes. It ranges from 0 to 100, with readings above 70 traditionally indicating overbought conditions and below 30 indicating oversold conditions.

RSI (Relative Strength Index) — Indian Stock Market Example

Nifty 50 RSI reaching above 75 in late 2021 signalled overbought conditions before the 2022 correction. Midcap stocks often show RSI divergences before reversals. Traders commonly use 14-period RSI on daily charts as the primary momentum indicator for Indian equities.

Analyse any Indian stock using RSI (Relative Strength Index)

Ask Orion: “What is the RSI (Relative Strength Index) for [stock] and how does it compare to peers?”

Analyse with Orion

Frequently Asked Questions about RSI (Relative Strength Index)

How do traders use RSI in Indian markets?

Common RSI strategies: (1) Overbought/Oversold: buy below 30, sell above 70; (2) RSI Divergence: stock makes new high but RSI doesn't — bearish signal; (3) RSI centerline crossover: above 50 = bullish momentum, below 50 = bearish. Always confirm with price action and volume.

What is RSI divergence?

Bullish divergence: price makes a lower low but RSI makes a higher low — signals weakening selling pressure and potential reversal up. Bearish divergence: price makes a higher high but RSI makes a lower high — signals weakening buying pressure and potential reversal down. Divergences are powerful confirmation signals.

Related Terms

MACD

Moving average convergence/divergence — trend-following momentum indicator.

Stochastic Oscillator

Momentum indicator comparing closing price to price range — signals overbought/oversold.

Bollinger Bands

Three bands (SMA ± 2 standard deviations) that expand/contract with volatility.

Trading Volume

Number of shares traded in a period — confirms price move validity.

Use RSI (Relative Strength Index) Analysis on Any NSE Stock

VestAI’s Orion AI surfaces RSI (Relative Strength Index) alongside RSI, MACD, PE, ROE and more — 10 free queries per month.

Try VestAI Free

← Back to full Glossary