Shares of state-run Rail Vikas Nigam Ltd (RVNL) are in a consolidation mode in the short term. The stock has been trading in the range of Rs 500 to Rs 550. Meanwhile, the multibagger railway stock has lost 19% from its record high of Rs 647 reached on July 15 this year. In the current session, the RVNL stock was trading 1.25% lower at Rs 523.10, the low point of the day on BSE. Total 0.85 lakh shares of RVNL changed hands amounting to a turnover of Rs 4.49 crore. Market cap of RVNL slipped to Rs 1.09 lakh crore on BSE. RVNL shares have a one-year beta of 1.4, indicating high volatility during the period.
In terms of technicals, the relative strength index (RSI) of RVNL stands at 43.9, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day but higher than the 100 day, 150 day and 200 day moving averages.
Mandar Bhojane, Equity Research Analyst, Choice Broking said, "RVNL is currently is in a consolidation phase with a sideways trend. The stock is forming an inside candlestick pattern, further reinforcing the likelihood of continued consolidation. A breakout above the resistance level of Rs 550 could trigger a short-term upward movement, with potential targets of Rs 600 and Rs 625. On the downside, immediate support is located at Rs 500, which presents a potential entry point for investors looking to buy on dips. The Relative Strength Index (RSI) stands at 39.28, indicating weak momentum at the moment. To manage risk effectively, a stop-loss at Rs 460 is recommended to protect against unexpected market reversals."
Kushal Gandhi, Technical Analyst, StoxBox said," RVNL's current price action reflects a period of profit booking, resulting in a lower-high structure that signifies a relatively weak intermediate trend. The share price is currently positioned near its demand zone, ranging from Rs 514 to 490. Sustaining a level above this range is imperative to mitigate the drawdown, while a breach below this threshold may trigger additional selling pressure. The 50-day moving average, currently hovering around 565, serves as an overhead resistance. Additionally, the Relative Strength Index (RSI) on daily and higher timeframes demonstrates a negative slope, indicating a decline in momentum. Given these observations, we advise refraining from purchasing RVNL at the prevailing market price and recommend waiting for further technical confirmation, as the stock lacks a discernible directional bias."
Gaurav Bissa, VP, InCred Equities said, "RVNL has been one the biggest beneficiary of flows seen to the railway theme. It has been in a strong uptrend since 2023 with consistent formation of higher highs and higher lows. It has also been trading in a 2-year ascending channel pattern with the most recent correction coming from the upper band of the channel resistance. It is now approaching its 89EMA support on daily as well as 21EMA support on the weekly charts placed around Rs 490-500 zone. This may act as immediate support area which can push the stock towards 580-590 levels as it has always managed to bounce from these moving averages in the past 2 years. However, a close below 490 along with RSI below 30 levels can result in a fall towards Rs 450 levels which will be the next support based on the lower band of the channel support."
Om Mehra, Technical analyst, SAMCO Securities said, "Rail Vikas Nigam Ltd has corrected nearly 18 to 20% from its 52-week high of Rs 647 and has consolidated near a support level around Rs 500. Despite the recent distribution, the primary trend remains positive. The volume has dried up in the recent sessions—5-day average volume remains at 23.19% and 1-month trailing average at 35.91%, indicating a potential upcoming reversal. The stock is trading above its 100-day and 200-day moving averages but below the 20-day and 50-day averages. A double bottom (bullish pattern) on the daily chart indicates a bullish signal. If the stock closes above the immediate resistance at Rs 545, it could rise to the Rs 600 level."
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.