RVNL shares hit upper circuit; snap three-day losing streak

Shares of Rail Vikas Nigam Ltd (RVNL) snapped three-day losing streak and were stuck in the upper circuit of 5% today. In the current trading session, RVNL opened 2.21% lower at Rs 119.20 against the previous close of Rs 121.90 on BSE.  Later, the stock was stuck in the upper circuit of 5% at Rs 127.95 on BSE.  Total 32.27 lakh shares of the firm changed hands amounting to a turnover of Rs 39.94 crore. Market cap of RVNL rose to Rs 26,677 crore on BSE. The stock hit a 52-week low of Rs 29 on June 21, 2022 and a record high of Rs 144.50 on May 8, 2023.  

In terms of technicals, the relative strength index (RSI) of RVNL stands at 67.2, signaling it's trading neither in the overbought nor in the oversold zone. RVNL stock has a one-year beta of 0.8, indicating low volatility during the period. Rail Vikas Nigam stock is trading higher than the 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.  

Despite falling for three sessions, the stock remains a multibagger, rising 310% in a year and gaining 87% in 2023. On the other hand, the 30-stock Sensex has gained 14.7% in a year and risen 1.97% in 2023. The parent index BSE 500 has climbed 12.37% in a year and risen 0.24%on a  year-to-date basis.   

Here's a look at what analysts said about the prospects of the RVNL stock.

Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One said, "RVNL has witnessed a strong spurt in price action in the recent period and has surged over 80 percent in the last couple of trading weeks. Post such a steep upsurge, the counter entered the overbought territory and hence, one should not rule out the possibility of cool-off. As far as levels are concerned, immediate support is placed around the Rs 110-100 zone in the comparable period."

Pravesh Gour, Senior Technical Analyst, Swastika Investmart said, "RVNL is in a strong uptrend and has broken a bullish flag formation. It created a base around Rs 100; however, Rs 140 is an immediate resistance where it may see some pause, but above this, it is likely to head towards Rs 150 levels. On the downside, Rs 100 is a major support at any correction, while Rs  87 is the next critical demand level. MACD and RSI are supporting the strength of the current movement. Investors can follow the buy-on-dip strategy when taking a new position on the counter."  

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.

Also Watch: Dr Reddy's share price tanks 6% after Q4 results; what should investors do? 

Also Watch: Adani Enterprises, other group shares rise after Mauritius minister rebuts Hindenburg allegations

Also read: Adani Enterprises shares jump 4% as Adani group flagship considers raising funds 

Also reaD: RVNL, IRCON International, YES Bank, Zomato shares rally amid high volumes; L&T, Dr Reddy's Labs log high turnovers