RVNL shares slip 12% from record high; is the bull run over?
RVNL share price today: RVNL shares ended at Rs 545.35, down 3.61% in the current session on BSE. They pared gains and closed 12% lower from the all time high of Rs 620 reached in the current session.
- Jul 9, 2024,
- Updated Jul 9, 2024 4:10 PM IST
Shares of Rail Vikas Nigam Ltd (RVNL) saw profit-booking on Tuesday, falling 12% from record high amid a rally in Sensex and Nifty. RVNL shares ended at Rs 545.35, down 3.61% in the current session on BSE. They pared gains and closed 12% lower from the all time high of Rs 620 reached in the current session.
The stock had hit record high for the fourth straight session today.
The stock has risen 32% in the last one week. Sentiment around the stock has been positive after reports said the Ministry of Railways plans to make another 10,000 non-AC coaches in 2024-25 and 2025-26 to meet the increasing demand and enhance passenger comfort for the common man on its network.
According to reports, the Ministry plans to roll out 4,485 non-AC coaches in the ongoing financial year (2024-25) and another 5,444 of these in 2025-26.
On Tuesday, total 89.68 lakh shares of RVNL changed hands amounting to a turnover of Rs 506.20 crore. Market cap of RVNL slipped to Rs 1.13 lakh crore on BSE. RVNL shares have a one-year beta of 1.5, indicating high volatility during the period.
The stock fell to a 52-week low of Rs 117.35 on July 13, 2023.
In terms of technicals, the relative strength index (RSI) of RVNL stands at 88.4, signaling it's trading in the overbought zone. Rail Vikas Nigam shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Analysts were mostly bullish on the prospects of the stock despite today’s correction.
Mandar Bhojane, Equity Research Analyst, Choice Broking said, "RVNL is currently trading at Rs 543.9. On July 9, profit booking was observed from its all-time high level. This upward momentum is supported by a consistent pattern of higher highs and higher lows on the daily chart, accompanied by robust trading volume. These patterns underscore a strong upward trajectory in the stock. The Relative Strength Index (RSI) stands at 79.8 and is on an upward trend, signifying a significant surge in buying momentum. If the price breaks out above Rs 600, it suggests potential for further upward movement, with projected price targets set at Rs 700 and Rs 800. A significant support level is identified near Rs 460 on the downside. The overall trend for RVNL is bullish, with confluence from various technical indicators reinforcing the optimistic outlook. It is advisable to consider buying on dips, particularly around Rs 470, capitalising on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 440 is recommended."
Rahul Ghose, CEO of Hedged.in said, "The RVNL counter had a stellar rally up to now, but current price action is suggesting to book profits at this juncture. The near term support for the stock is around the Rs 505 levels, breaking which a short term consolidation or correction can be expected in the stock. This could mean a time correction as well. The follow on to today's red candle closing is what should be watched out for if and when it arises. It is also important to note that the stock is still in a bullish range, and a correction will provide a buying opportunity for the long term below around the Rs 450 level."
Gaurav Bissa, VP, InCred Equities said, "RVNL along with other stocks in the railway space has witnessed strong upside in the last few quarters. Interestingly, it has cruised with formation of higher highs and higher lows, which is a characteristic of a strong uptrend. Also, this ensures the momentum indicators cool off a bit which keeps the momentum strong. However, RVNL has now witnessed a small reversal from a rising wedge resistance around Rs 610-625 zone. It is advised to book part profit at current levels and fresh entry is advised on a dip towards Rs 460 levels which will provide a lucrative risk reward opportunity."
Shiju Koothupalakkal- Technical Research Analyst, Prabhudas Lilladher said, "The stock has witnessed a decent spurt in the last 3 sessions from Rs 420 levels and hitting the high of Rs 619 zone, has shown resistance with some profit booking witnessed which was but obvious. The stock has taken a breather as of now with near-term support of Rs 528-530 levels and with overall bias maintained positive, we anticipate the upward move further ahead. Once a breach above Rs 619 is confirmed, we can expect for next targets of Rs 655 and Rs 680 levels in the coming days. At the same time, a decisive breach below Rs 502-507 zone shall weaken the trend and shall negate our view."
Riyank Arora, technical analyst at Mehta Equities calls for fixing a stop loss at Rs 500 mark.
"RVNL shares experienced significant profit-taking at higher levels, with the stock currently in an overbought zone. Given the price structure, the upside potential appears limited to the Rs 650.00 to Rs 675 range. As the stock continues its upward trend, it is advisable to maintain a strict stop-loss at the Rs 500 mark," said Arora.
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.
Shares of Rail Vikas Nigam Ltd (RVNL) saw profit-booking on Tuesday, falling 12% from record high amid a rally in Sensex and Nifty. RVNL shares ended at Rs 545.35, down 3.61% in the current session on BSE. They pared gains and closed 12% lower from the all time high of Rs 620 reached in the current session.
The stock had hit record high for the fourth straight session today.
The stock has risen 32% in the last one week. Sentiment around the stock has been positive after reports said the Ministry of Railways plans to make another 10,000 non-AC coaches in 2024-25 and 2025-26 to meet the increasing demand and enhance passenger comfort for the common man on its network.
According to reports, the Ministry plans to roll out 4,485 non-AC coaches in the ongoing financial year (2024-25) and another 5,444 of these in 2025-26.
On Tuesday, total 89.68 lakh shares of RVNL changed hands amounting to a turnover of Rs 506.20 crore. Market cap of RVNL slipped to Rs 1.13 lakh crore on BSE. RVNL shares have a one-year beta of 1.5, indicating high volatility during the period.
The stock fell to a 52-week low of Rs 117.35 on July 13, 2023.
In terms of technicals, the relative strength index (RSI) of RVNL stands at 88.4, signaling it's trading in the overbought zone. Rail Vikas Nigam shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Analysts were mostly bullish on the prospects of the stock despite today’s correction.
Mandar Bhojane, Equity Research Analyst, Choice Broking said, "RVNL is currently trading at Rs 543.9. On July 9, profit booking was observed from its all-time high level. This upward momentum is supported by a consistent pattern of higher highs and higher lows on the daily chart, accompanied by robust trading volume. These patterns underscore a strong upward trajectory in the stock. The Relative Strength Index (RSI) stands at 79.8 and is on an upward trend, signifying a significant surge in buying momentum. If the price breaks out above Rs 600, it suggests potential for further upward movement, with projected price targets set at Rs 700 and Rs 800. A significant support level is identified near Rs 460 on the downside. The overall trend for RVNL is bullish, with confluence from various technical indicators reinforcing the optimistic outlook. It is advisable to consider buying on dips, particularly around Rs 470, capitalising on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at Rs 440 is recommended."
Rahul Ghose, CEO of Hedged.in said, "The RVNL counter had a stellar rally up to now, but current price action is suggesting to book profits at this juncture. The near term support for the stock is around the Rs 505 levels, breaking which a short term consolidation or correction can be expected in the stock. This could mean a time correction as well. The follow on to today's red candle closing is what should be watched out for if and when it arises. It is also important to note that the stock is still in a bullish range, and a correction will provide a buying opportunity for the long term below around the Rs 450 level."
Gaurav Bissa, VP, InCred Equities said, "RVNL along with other stocks in the railway space has witnessed strong upside in the last few quarters. Interestingly, it has cruised with formation of higher highs and higher lows, which is a characteristic of a strong uptrend. Also, this ensures the momentum indicators cool off a bit which keeps the momentum strong. However, RVNL has now witnessed a small reversal from a rising wedge resistance around Rs 610-625 zone. It is advised to book part profit at current levels and fresh entry is advised on a dip towards Rs 460 levels which will provide a lucrative risk reward opportunity."
Shiju Koothupalakkal- Technical Research Analyst, Prabhudas Lilladher said, "The stock has witnessed a decent spurt in the last 3 sessions from Rs 420 levels and hitting the high of Rs 619 zone, has shown resistance with some profit booking witnessed which was but obvious. The stock has taken a breather as of now with near-term support of Rs 528-530 levels and with overall bias maintained positive, we anticipate the upward move further ahead. Once a breach above Rs 619 is confirmed, we can expect for next targets of Rs 655 and Rs 680 levels in the coming days. At the same time, a decisive breach below Rs 502-507 zone shall weaken the trend and shall negate our view."
Riyank Arora, technical analyst at Mehta Equities calls for fixing a stop loss at Rs 500 mark.
"RVNL shares experienced significant profit-taking at higher levels, with the stock currently in an overbought zone. Given the price structure, the upside potential appears limited to the Rs 650.00 to Rs 675 range. As the stock continues its upward trend, it is advisable to maintain a strict stop-loss at the Rs 500 mark," said Arora.
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.