Shares of Rail Vikas Nigam Ltd (RVNL) recorded a sharp upward move in Monday's trading session. The stock surged 100 per cent to hit its upper price band of Rs 607.95. At this price, the multibagger counter has rallied 233.76 per cent on a year-to-date (YTD) basis. Despite the mentioned uptick, the scrip was down 6.04 per cent from its all-time high value of Rs 647, a level seen earlier this month on July 15.
The rail PSU has recently bagged an order worth Rs 191.53 crore. "RVL has received Letter of Acceptance from SER HQELECTRICAL/South Eastern Railway for Design, Supply, Erection, Testing & Commissioning of 132 KV Traction Substation, Sectioning post (SPs), and Sub sectioning post (SSPs) in 2x25KV System on Rajkhaswan- Nayagarh-Bolani section of Chakradharpur division of South Eastern Railway to meet 3000MT loading target on EPC mode," the state-owned firm stated.
RVNL has been securing new orders and signing meaningful pacts lately.
On technical setup, support on the counter will be at Rs 570, followed by Rs 550 level. Immediate resistance could be seen in the Rs 607-610 range. And, a decisive breach above the said resistance zone is required for more upside. With that being said, an analyst suggested entering into the counter at current levels.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a short period of correction after a decent spurt. One can anticipate a further rise in the coming days. With the overall chart looking good, traders can enter at current levels, keeping the stop loss of Rs 550 and expecting targets of Rs 607 and Rs 644 levels."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock has potential to hit an upside target of Rs 630. Keep stop loss placed at Rs 570."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 550 and resistance at Rs 610. The expected trading range will be between Rs 545 and Rs 612 in 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.