RVNL shares are down 45% from record high, should you buy or wait for further dips ?

Shares of Rail Vikas Nigam Ltd (RVNL) have slipped 45% from their record high in less than a year. The multibagger railway stock hit a record high of Rs 647 on July 15, 2024. On the other hand, RVNL stock has risen 196.55% in two years and gained 1050% in three years despite the short term correction

In period up to six months, the stock is down up to 15%. 

RVNL shares have a one-year beta of 1.7, indicating high volatility during the period. 

In terms of technicals, the relative strength index (RSI) of RVNL stands at 53.2, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day but lower than the 100 day, 150 day, 200 day moving averages. 

RVNL stock was trading on a flat note at Rs 357.40 on Tuesday. Market cap of the firm fell to Rs 74,487 crore.

Amol Athawale, VP-technical Research, Kotak Securities said, "After a short-term  correction, the stock eventually took support near Rs 318 and reversed sharply. Following a promising reversal formation, the stock is currently trading near the 20 and 50-day Simple Moving Averages (SMAs). For short-term traders, Rs 335 and Rs 332 would act as key support zones. As long as the stock remains above these levels, the uptrend is likely to continue. On the higher side, the stock could move up to Rs 360, with further upside potential that could lift it up to Rs 370. Conversely, below Rs 332, the uptrend would become vulnerable."

A R Ramachandran, SEBI registered Independent analyst says, "RVNL is slightly bullish on the Daily charts with strong support at 305. A Daily close above resistance of 346 could  lead to a target of 384 in the near term."

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.