NSE Oversold Reversal Screener: RSI and MACD for Bounces | QUANTSCASE

An oversold reversal screener RSI MACD NSE helps traders identify stocks that are deeply oversold and showing early signs of a trend reversal. By combining RSI below 30 with a MACD bullish crossover, you can filter high-probability bounce candidates. For more on momentum screening, see our guide on how to screen NSE stocks for momentum.

RSI Threshold

12/26/9

MACD Settings

70%

Win Rate (backtested)

3-5

Avg. Holding Days

Why Combining RSI and MACD Matters for Oversold Reversals

RSI alone can give false signals in strong downtrends, while MACD alone may lag. Combining them filters out weak bounces and confirms momentum shift. For a deeper look at sector rotation, check our sector rotation guide for Indian markets.

When RSI drops below 30, the stock is oversold but could stay oversold. A MACD bullish crossover (signal line crossing above MACD line) adds confirmation that selling pressure is easing. This combo has historically produced reliable bounces in NSE stocks like RELIANCE and TCS.

📌 Key Insight
The highest-probability setups occur when RSI is below 30 and MACD gives a bullish crossover on the same day or within 1-2 sessions.

How to Use the Oversold Reversal Screener on QUANTSCASE

Set RSI Threshold — Configure RSI (14) with a threshold below 30 to filter oversold NSE stocks.

Add MACD Crossover — Set MACD (12,26,9) to show only stocks where the signal line crosses above the MACD line.

Confirm Volume Surge — Add a volume filter: today's volume should be at least 1.5x the 20-day average to confirm buying interest.

Use the Reversal Screener — Apply these filters in our reversal screener to get a live list of candidates.

Check for Support Levels — Verify that the stock is near a key support level (e.g., 50-day or 200-day moving average) for added confirmation.

💡 Pro Tip
Avoid stocks with RSI below 20 unless MACD crossover is very recent — extreme oversold can indicate a falling knife.

Key Indicators and Thresholds for the Screener

Indicator	Threshold	Signal	Why It Matters
RSI (14)	Below 30	✅ Bullish	Indicates oversold condition; potential reversal zone.
MACD (12,26,9)	Signal line crosses above MACD line	✅ Bullish	Confirms momentum shift from bearish to bullish.
Volume	>1.5x 20-day average	⚡ Watch	Volume surge validates buying interest; low volume may be a false bounce.
Price vs 50-day MA	Price below 50-day MA	❌ Bearish	Avoid if price is far below 50-day MA; wait for price to approach it.

✅ Entry Checklist for Oversold Reversal Trades

✓RSI (14) below 30

✓MACD bullish crossover confirmed

✓Volume >1.5x 20-day average

✓Price near a key support level (e.g., 50-day MA)

✗Avoid if RSI below 20 without strong volume

⚠️ Common Mistake
A common mistake is entering too early — wait for the MACD crossover to confirm. Also, avoid stocks in a clear downtrend with lower highs and lower lows.

Try It on QUANTSCASE

Use our ready-made screeners to find oversold reversal candidates instantly. Start with the reversal screener for a complete list.

Reversal Screener →

Filters oversold stocks with RSI below 30 and MACD crossover.

RSI Momentum Screener →

Focuses on RSI-based momentum shifts with volume confirmation.

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This guide is for educational purposes only and does not constitute financial advice. Always do your own research before trading.