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Shares of Rail Vikas Nigam Ltd (RVNL), one of the top-performing railway stocks in recent years, have witnessed a sharp correction of 45% from their all-time high of Rs 647 recorded on July 15, 2024. On Tuesday, RVNL stock was trading flat at Rs 357.40, dragging the company’s market capitalisation down to Rs 74,487 crore.
Despite the short-term weakness, RVNL continues to be a multibagger in the long run. The stock has delivered a massive 1050% return in the last three years, and nearly 197% gains over the last two years. However, in the last six months alone, the counter has slipped by around 15%, raising concerns among short-term investors.
Volatility and Technical View
RVNL currently has a 1-year beta of 1.7, highlighting its volatile nature. On the technical front, the Relative Strength Index (RSI) stands at 53.2 – suggesting a neutral zone, neither overbought nor oversold.
The stock is currently trading above its 5, 10, 20, 30, and 50-day moving averages, but remains below its 100, 150, and 200-day moving averages, indicating a mixed technical outlook.
Analyst Opinions
Amol Athawale, VP–Technical Research at Kotak Securities, commented, “RVNL recently bounced back from Rs 318 and is now hovering near the 20 and 50-day SMAs. For short-term traders, support lies at Rs 335–332. As long as these levels hold, the uptrend could take the stock to Rs 360–370. A breach below Rs 332 may, however, weaken the trend.”
A R Ramachandran, SEBI-registered independent analyst, also maintains a cautiously optimistic stance. “RVNL shows slight bullishness on daily charts with strong support at Rs 305. A daily close above Rs 346 could trigger an upward move towards Rs 384.”
What Does RVNL Do?
RVNL is the executing arm of Indian Railways, responsible for delivering turnkey infrastructure projects. The company handles every stage – from design to commissioning – on behalf of the Ministry of Railways, making it a crucial player in India's rail development.
Disclaimer:
The content provided by Jobaaj News is for informational purposes only and should not be considered as investment advice. Please consult a certified financial advisor before making any investment decisions. Stock markets are subject to risks and past performance is not indicative of future returns.
