{"id":69910,"date":"2026-04-10T18:01:47","date_gmt":"2026-04-10T12:31:47","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=69910"},"modified":"2026-04-10T18:01:49","modified_gmt":"2026-04-10T12:31:49","slug":"blogs-what-is-rsi-in-stock-market","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/","title":{"rendered":"What is RSI in Stock Market? Relative Strength Index Explained for Indian Investors"},"content":{"rendered":"<p>RSI in the stock market is one of the most widely used technical indicators in stock market analysis, and for good reason: it gives you a quick, quantified read on whether a stock is gaining or losing momentum, and whether it may be getting overextended in either direction.<\/p><p>If you have ever looked at a stock chart on Zerodha, Upstox, or TradingView, you have likely seen the RSI line oscillating between 0 and 100 below the price chart. Understanding what this number means, how it is calculated, and \u2014 most importantly \u2014 how to use it in real trading decisions is what this guide covers.<\/p><p><a href=\"https:\/\/univest.in\/user\/log-in\"><strong>Click Here \u2013 Get Free Investment Predictions<\/strong><\/a> on Univest.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/#RSI_The_Simple_Explanation\" title=\"RSI: The Simple Explanation\">RSI: The Simple Explanation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/#How_RSI_Is_Calculated\" title=\"How RSI Is Calculated\">How RSI Is Calculated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/#How_to_Use_RSI_in_Indian_Stock_Market_Trading\" title=\"How to Use RSI in Indian Stock Market Trading\">How to Use RSI in Indian Stock Market Trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/#Quick_Reference_Table\" title=\"Quick Reference Table\">Quick Reference Table<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/#Q1_What_is_RSI_in_the_stock_market\" title=\"Q1. What is RSI in the stock market?\">Q1. What is RSI in the stock market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/#Q2_What_is_the_best_RSI_setting_for_intraday_trading\" title=\"Q2. What is the best RSI setting for intraday trading?\">Q2. What is the best RSI setting for intraday trading?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/#Q3_Should_I_sell_when_RSI_is_above_70\" title=\"Q3. Should I sell when RSI is above 70?\">Q3. Should I sell when RSI is above 70?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/blogs-what-is-rsi-in-stock-market\/#Recent_Articles\" title=\"Recent Articles\">Recent Articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RSI_The_Simple_Explanation\"><\/span><strong>RSI: The Simple Explanation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>RSI measures the speed and magnitude of recent price changes to evaluate whether a stock is overbought (price has risen too far, too fast) or oversold (price has fallen too far, too fast). It oscillates between 0 and 100.<\/p><p>The standard interpretation: RSI above 70 signals overbought territory \u2014 the stock may be due for a pullback. RSI below 30 signals oversold territory \u2014 the stock may be due for a bounce. RSI around 50 indicates neutral momentum.<\/p><p>But here is the critical nuance: overbought does not automatically mean sell, and oversold does not automatically mean buy. A strong-trending stock can stay overbought for months. A badly declining stock can stay oversold for months. RSI works best as a confirmation tool, not a standalone buy\/sell signal.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_RSI_Is_Calculated\"><\/span><strong>How RSI Is Calculated<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>RSI uses 14 periods (days, weeks, or hours, depending on the chart timeframe) by default. The formula is: RSI = 100 &#8211; (100 \/ (1 + RS)), where RS = Average Gain over 14 periods \/ Average Loss over 14 periods. You do not need to calculate this manually \u2014 every charting platform computes it automatically. What matters is understanding what the number tells you about price momentum.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Use_RSI_in_Indian_Stock_Market_Trading\"><\/span><strong>How to Use RSI in Indian Stock Market Trading<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>RSI divergence is one of the most powerful signals. Bullish divergence occurs when the stock price makes a new low but RSI makes a higher low \u2014 suggesting selling pressure is weakening even as price continues down. This often precedes a meaningful reversal.<\/p><p>RSI crossing the 50 level (from below to above) is a momentum confirmation signal for uptrends. Many traders use this as an entry trigger in conjunction with other indicators.<\/p><p>RSI overbought readings (70+) in a strong uptrending stock are not necessarily sell signals \u2014 they simply indicate high momentum. However, RSI above 80-85 in a stock with no fundamental catalyst typically signals an unsustainable short-term move.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Quick_Reference_Table\"><\/span><strong>Quick Reference Table<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>RSI Level<\/strong><\/td><td><strong>Interpretation<\/strong><\/td><td><strong>Action<\/strong><\/td><td><strong>Caution<\/strong><\/td><\/tr><tr><td>0-30<\/td><td>Oversold<\/td><td>Potential bounce candidate<\/td><td>Check if fundamentally distressed<\/td><\/tr><tr><td>30-50<\/td><td>Bearish momentum<\/td><td>Caution zone<\/td><td>Wait for RSI &gt; 50 to confirm<\/td><\/tr><tr><td>50<\/td><td>Neutral<\/td><td>Transition point<\/td><td>Watch direction<\/td><\/tr><tr><td>50-70<\/td><td>Bullish momentum<\/td><td>Hold or cautious add<\/td><td>Check if valuation stretched<\/td><\/tr><tr><td>70-100<\/td><td>Overbought<\/td><td>Monitor for reversal<\/td><td>Strong trends can stay overbought<\/td><\/tr><\/tbody><\/table><\/figure><p>Use the <a href=\"https:\/\/univest.in\/screeners\"><strong>Univest Screener<\/strong><\/a> to filter and compare all stocks mentioned in this article with live data.<\/p><p>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> for daily research and SEBI-registered stock recommendations.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q1_What_is_RSI_in_the_stock_market\"><\/span><strong>Q1. What is RSI in the stock market?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>RSI (Relative Strength Index) is a momentum oscillator that measures the speed and magnitude of recent price changes. It ranges from 0 to 100. Above 70 suggests overbought conditions; below 30 suggests oversold conditions.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q2_What_is_the_best_RSI_setting_for_intraday_trading\"><\/span><strong>Q2. What is the best RSI setting for intraday trading?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>For intraday trading (5 or 15-minute charts), some traders use RSI 7 or RSI 9 for more responsive signals. RSI 14 is the standard for daily charts. Shorter periods make RSI more sensitive but also create more false signals.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q3_Should_I_sell_when_RSI_is_above_70\"><\/span><strong>Q3. Should I sell when RSI is above 70?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Not necessarily. A strong bullish trend can maintain RSI above 70 for extended periods. RSI above 70 signals high momentum, not an automatic sell. Combine RSI with price action, volume, and fundamental analysis for better decisions.<\/p><p><strong>Disclaimer: <\/strong>Investments in securities are subject to market risk. This article is for educational purposes only and does not constitute investment advice. Consult a SEBI-registered financial advisor before investing.<\/p><p>For more articles, visit <a href=\"https:\/\/univest.in\/blogs\">Univest Blogs<\/a>.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_Articles\"><\/span>Recent Articles<span class=\"ez-toc-section-end\"><\/span><\/h2><p>&nbsp;<a href=\"https:\/\/univest.in\/blogs\/why-is-krbl-share-price-falling\"><strong>Why is KRBL Share Price Falling? Check Next Share Price Target&nbsp;<\/strong><\/a><\/p><p><a href=\"https:\/\/univest.in\/blogs\/why-is-reliance-infrastructures-share-price-falling\"><strong>Why is Reliance Infrastructures Share Price Falling? Check Next Share Price Target&nbsp;<\/strong><\/a><\/p><p><a href=\"https:\/\/univest.in\/blogs\/why-is-mahanagar-gas-share-price-falling\"><strong>Why is Mahanagar Gas Share Price Falling? Check Next Share Price Target&nbsp;<\/strong><\/a><\/p><p><a href=\"https:\/\/univest.in\/blogs\/why-is-happiest-minds-share-price-falling\"><strong>Why is Happiest Minds Share Price Falling? Check Next Share Price Target&nbsp;<\/strong><\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>RSI in the stock market is one of the most widely used technical indicators in stock market analysis, and for good reason: it gives you a quick, quantified read on whether a stock is gaining or losing momentum, and whether it may be getting overextended in either direction. If you have ever looked at a<\/p>\n","protected":false},"author":26,"featured_media":69913,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1002],"tags":[],"class_list":["post-69910","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advisory"],"metadata":{"_edit_lock":["1775824396:26"],"_last_editor_used_jetpack":["block-editor"],"rank_math_internal_links_processed":["1"],"rank_math_primary_category":["1002"],"rank_math_seo_score":["67"],"rank_math_focus_keyword":["What is RSI in Stock Market"],"rank_math_title":["What is RSI in Stock Market? Relative Strength Index Explained for Indian Investors"],"rank_math_description":["What is RSI in stock market India? Relative Strength Index explained simply. RSI formula, how to use RSI for buying\/selling, overbought\/oversold levels with 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