Sun Star Ltd. is a listed company whose share prices for last 14 trading session are given below. Calculate Relative Strength Index: Trading session number Share price (₹) 1 334 2 344 3 335 4 312 5 334 6 348 7 314 8 309

Step 1: Calculation of Average Gain and Average Loss Trading session number Share price (₹) Gain in ₹ Loss in ₹ 1 334 2 344 10 3 335 9 4 312 23 5 334 22 6 348 14 7 314 34 8 309 5 9 316 7 10 339 23 11 347 8 12 317 30 13 333 16 14 340 7 Total 107 101 Number of sessions 8 5 Average Gain/Loss 13.375 20.2 Step 2: Calculation of Relative Strength RS = Average Gain Per Day / Average Loss Per Day = 13.375 / 20.2 = 0.66 Step 3: Calculation of Relative Strength Index RSI = 100 - [100 / (1+RS)] = 100 - [100 / (1+0.66)] = 100 - [100 / 1.66] = 100 - 60.24 = 39.76 or 40 Approx.