RailTel Corp shares halt 3-session winning run, slump 10% today; is the bull run over?

Shares of RailTel Corporation of India Ltd plunged in Tuesday's trade, halting their three-day gaining streak. The stock cracked 10 per cent to hit its lower price band of Rs 223.55 against a previous close of Rs 248.35. Considering today's low price of Rs 223.55, the scrip was down 12.33 per cent from its one-year high price of Rs 255, a level seen during the previous trading session on Monday. Despite the said fall, the state-run firm has turned into a multibagger by rallying 132.38 per cent from its 52-week low of Rs 96.20, hit on March 28, 2023.

On BSE, around 14.52 lakh shares changed hands today. This was slightly lower than the two-week average volume of 14.74 lakh shares. Turnover on the counter stood at Rs 33.96 crore, commanding a market capitalisation (m-cap) of Rs 7,174.58 crore. There were 3,56,972 sell orders today as compared to buy orders of nil shares.

Technical analysts largely said that the counter looked 'bearish'. Support on the counter could be seen at Rs 224, followed by Rs 219 and Rs 205 levels.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed a decent spurt in the last one month and currently has found resistance near the Rs 254 zone with near-term support lying near Rs 219. Some exhaustion has been witnessed near the peak zone and profit booking can be anticipated in the coming days. The overall bias is maintained strong till Rs 208 level is sustained. We can expect further upward move after the consolidation phase passes on."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "On a daily scale, the counter has made bearish divergence near Rs 250 level, where the price action made higher highs, but the RSI (Relative strength index) didn't compliment along with it. At the current juncture, the stock is trading way above all major daily exponential averages. So, profit booking can be seen in near term. As we advance, Rs 240 would be stiff resistance and support is seen around Rs 205."

AR Ramachandran from Tips2trades said, "Railtel Corp has turned bearish on the daily charts with strong resistance at Rs 253. Investors should be booking profits at current levels as a daily close below support of Rs 224 could lead to a sharp fall till Rs 189 in the near term."

Market expert Ravi Singh said, "The counter is looking weak on daily charts. It may decline towards Rs 215 in the near term."

RailTel Corp, a Mini Ratna (Category-1) PSU, is an information and communications technology (ICT) provider and one of the largest neutral telecom infrastructure providers in the country with a pan-India optic fiber network. As of June 30, 2023, the government holds a 72.84 per cent stake in the company.

Meanwhile, Indian equity benchmarks were trading higher in a volatile trade today as gains in technology and pharma shares countered losses in metal and energy stocks.

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