Bearish Trends
Tesla (NASDAQ:TSLA) is one of Wall Street’s most oversold stocks.
The megacap EV manufacturing stock has an oversold relative strength index of 18, much below the usual 30.
The 10 most oversold equities by RSI are given below. (The list only includes $10B+ stocks.)
Most Oversold Wall Street Stocks
Number 10: Newmont Corporation (NEM): 28 RSI.
No. 9: ZTO Express (Cayman) Inc. (ZTO): 26 RSI.
No. 8: Engie SA (OTCPK:ENGIY): 23 RSI.
7: DuPont de Nemours (DD): 23 RSI.
No. 6: Humana (NYSE:HUM): 22 RSI.
No. 5: Bunge Global SA (BG): 22 RSI.
No. 4: Tesla (TSLA): 18 RSI.
No. 3 : Kuaishou Technology (OTCPK:KUASF): 16 RSI.
No. 2: Archer-Daniels-Midland (NYSE:ADM): 16 RSI.
No. 1: Naspers Limited (OTCPK:NAPRF): 5 RSI.
Annual price action:
Newmont Corporation NEM -17.3%,
ZTO Express ZTO -20.2%,
Engie SA ENGIY -9.9%,
DuPont de Nemours DD -15.9%,
Humana HUM -21.1%,
Bunge Global SA BG -12.5%,
Tesla TSLA -26.2%,
Kuaishou Technology KUASF -23.1%,
Archer-Daniels-Midland ADM -27.9%,
Naspers Limited NAPRF +0.4%.
“The stock price drop makes Tesla undervalued, making now an ideal time to invest,” In Ignore Pessimism, Beginner Investor said: Tesla is undervalued and unlikely to fail.
The main issue is that a good company is overvalued. Growth prospects are falling substantially, which does not please shareholders, Eugenio Catone said in Tesla Q4: 2024 Started Badly And May End Worse.
Tesla investors who want a more diversified approach can use exchange traded funds. These three ETFs have the most Tesla exposure (excluding single stock leveraged ETFs).
Meet Kevin Pricing Power ETF (PP): 21.64% TSLA.
TSLA weighs 15.61% in Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY).
VCR Consumer Discretionary Select Sector SPDR Fund: 13.57% TSLA.
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Nifty and Sensex rose about 2 percent each on January 29 after buying across sectors and heavyweights, erasing prior session losses and starting the Budget week strong.At closure, the Sensex was up 1,240.90 points or 1.76 percent at 71,941.57 and the Nifty was up 385.00 points or 1.80 percent at 21,737.60.Due to favorable Asian markets, the Indian equity indices opened strong and extended gains as the day went, with Sensex and Nifty reaching 72,000 and 21,750, respectively, before ending near the day’s highs.
Nifty winners were ONGC, Reliance Industries, Adani Enterprises, Coal India, and Adani Ports, while losers included Cipla, ITC, LTIMindtree, Bajaj Auto, and Infosys.Oil & gas, power, and capital goods are up 5%, 3%, and 2%, respectively.BSE Smallcap index increased 1% and Midcap index 1.7 percent.The build-up was long for ONGC, Reliance Industries, and REC, but brief for AU Small Finance Bank, SBI Cards, and United Breweries.SJVN, Cummins India, Godrej Properties, Indian Bank, Indian Hotels, Infibeam Avenue, IRB Infrastucture, LIC Housing Finance, NBCC (India), NCC, NHPC, ONGC, PNC Infratech, Power Finance, Rain Industries, REC, Shakti Pumps, Shriram Finance, Steel Exchange, Tata Investment Corporation, and others reached 52-week highs on Click for the complete list.
Energy companies Reliance and ONGC dominated today’s trade. After starting the week well above 21,500, the Index compounded its gains with follow-through and closed at 21,737.60, up 385 points.Every sector except FMCG closed the day green, with Energy and PSU Banking leading the way. The Index broke between 21,500 and 21,700 and made a solid bullish candle on the daily chart in one go, although we expect pressure around 21,750.An Inverted Head & Shoulder design is possible but premature. 21,850 is immediate resistance, while 21,570 protects the downside.
The Nifty trended higher and closed in the green, up ~385 points. On the daily charts, the Nifty has exceeded the swing high of 21750, violating the downtrend’s lower top lower bottom structure. The 40-day average around 21200 supported the Nifty during the collapse and will now act as a lower limit during consolidation.On the upside, the Index can extend its down towards 21913, the 78.6% fibonacci retracement level of the collapse from 22124 to 21137, and the gap formed on January 17, 2024 in the range 21850–22000 will operate as an immediate hurdle. The daily momentum indicator has a negative crossover
but it has reached the equilibrium line and prices are not weak, suggesting range bound action over the next few trading sessions. We will adjust our Nifty forecast to sideways and expect consolidation between 21200 and 22000.Bank Nifty is retracing its slide from 48300 to 44500, therefore the pullback could last till 46000–46200. Short-term support is 45110 on the downside.