Looking for Fundamentally Strong Halal stocks with strong growth potential? Stocks trading in the oversold zone, with a Relative Strength Index (RSI) below 30, often present unique buying opportunities.
In this article, we highlight Shariah-compliant stocks currently in the oversold zone, offering a chance to invest in fundamentally strong companies at attractive prices. Whether you’re building an ethical portfolio or seeking undervalued gems, these Halal stocks deserve your attention.
What is RSI and Why Does It Matter?
The Relative Strength Index (RSI) is a popular momentum indicator used to identify overbought or oversold conditions in stocks. RSI ranges from 0 to 100:
- Above 70: Overbought (potential price drop).
- Below 30: Oversold (potential price rise).
For ethical investors, combining RSI analysis with Shariah compliance ensures you’re investing in undervalued stocks that align with your values.
Here is the list of Halal stocks that are in the Oversold Zone:
1. Cello World Ltd.
- RSI Level: 27.76
- Overview: A leading consumer goods company, Cello World specializes in innovative products for home and kitchen.
- Key Strengths: Strong brand recognition and a wide distribution network across India.
2. Gujarat Gas Ltd.
- RSI Level: 26.84
- Overview: A leading natural gas distribution company, Gujarat Gas serves industrial, commercial, and residential customers.
- Key Strengths: Monopoly in key regions and a growing customer base due to the shift towards cleaner energy.
3. JK Paper Limited
- RSI Level: 21.67
- Overview: A leading manufacturer of paper and packaging board products, JK Paper Ltd. operates with advanced technology and a strong presence in domestic and international markets.
- Key Strengths: Dominates the paper industry with a diversified product portfolio and sustainable manufacturing practices.
4. Carborundum Universal Ltd. (CUMI)
- RSI Level: 19.52
- Overview: A multinational company specializing in abrasives, ceramics, and electro-minerals, CUMI has a global footprint with manufacturing facilities in India, Russia, South Africa, and China.
- Key Strengths: Strong R&D capabilities and a wide range of high-performance products for industrial applications.
5. Orchid Pharma Ltd.
- RSI Level: 22.40
- Overview: A pharmaceutical company focused on APIs and finished dosage formulations, Orchid Pharma is a key player in the cephalosporin antibiotic segment.
- Key Strengths: US FDA-approved manufacturing facilities and a strong focus on antibiotics and injectables.
6. Natco Pharma Ltd.
- RSI Level: 20.49
- Overview: A leading pharmaceutical company, Natco Pharma specializes in generic medicines, oncology drugs, and APIs, with a strong presence in domestic and international markets.
- Key Strengths: Expertise in oncology and a robust pipeline of affordable generic drugs.
Conclusion
Investing in Halal stocks trading in the oversold zone (RSI < 30) is a smart way to combine ethical investing with potential high returns. The stocks listed above are JK Paper, Carborundum Universal, Natco Pharma, Orchid Pharma, Cello World, and Gujarat Gas are not only Halal and Shariah-compliant but also fundamentally strong. Keep an eye on these undervalued gems as they could be excellent additions to your ethical portfolio.
Disclaimer: The information on Halalfinance.co.in is for educational and informational purposes only and not financial advice. We are not liable for any investment decisions you make; always consult a financial advisor before investing.
Hasan is the founder of HalalFinance.co.in, created after personally struggling to find reliable answers about halal investing in stocks. With a finance background and a passion for helping the Muslim community, He now shares well-researched, transparent, and authentic content to empower Muslims on their path to halal wealth-building.