Rail Vikas Nigam Ltd (RVNL) shares climbed 3.47 per cent in Wednesday's trade after the state-owned rail firm emerged as lowest bidder for an order worth Rs 111.38 crore from Southern Railway. "RVNL emerges as the lowest bidder from Southern Railway for Provision of MSDAC with existing DCTC at Stations (To serve as Dual detection) and replacing balance AFTCs in MAS- GDR & MSB-TBM automatic block signalling sections of Chennai Division in Southern Railway," it stated in a BSE filing.
The stock gave up a major chunk of its gains as the session progressed and was last seen trading 0.32 per cent up at Rs 578. At this price, it was down 10.67 per cent from its all-time high value of Rs 647, a level seen last month on July 15. Despite the mentioned fall, the multibagger scrip has rallied 217.27 per cent on a year-to-date (YTD) basis.
On the technical setup, analysts largely suggested that the stock is in a 'corrective' phase. Near-term support could be seen in the Rs 570-550 zone and immediate resistance may be found at Rs 600. "Once the stock is above the Rs 600 range, we can expect it to retest the previous peak level of Rs 647 as its initial target," one of the analysts said.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "RVNL is in a time-wise corrective phase. The stock has near-term support at Rs 550, followed by the Rs 520 subzone. On the higher end, a series of resistance can be seen at 600-620 levels, and a decisive breakthrough can only trigger fresh traction in the counter."
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has been consolidating for quite a while now and shown tough resistance near the Rs 600 zone which needs to be breached decisively to trigger for a fresh upward. Near-term support will be around Rs 554 level which needs to be sustained. The bias is overall maintained positive. Once the stock is above the Rs 600 range, we can expect it to retest the previous peak level of Rs 647 as its initial target."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "One can consider buying the stock at around Rs 575 level for an expected target price of Rs 600. Keep stop loss placed at Rs 565."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 570 and resistance at Rs 595. A decisive close above Rs 595 level may trigger a further upside towards Rs 615. The expected trading range will be between Rs 565 and Rs 625 for the short term."
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry to execute projects assigned to it. 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, projects and contract management.
As of June 2024, the government held a 72.84 per cent stake in the rail PSU.