Shares of Rail Vikas Nigam Ltd (RVNL) on Wednesday settled lower after scaling their lifetime high levels. The stock jumped 5.06 per cent during intraday trade to hit a record high of Rs 359. Later, the scrip gave up its entire gains to settle 0.04 per cent lower at Rs 341.55.
The rail PSU has recently bagged an order worth around Rs 148.27 crore from South Eastern Railway. RVNL's net profit surged 33.2 per cent on a year-on-year (YoY) basis to Rs 478.6 crore in the fourth-quarter (Q4 FY24). Revenue from operations during the quarter under review grew 17.4 per cent (YoY) to Rs 6,714 crore.
Separately, the company has informed that the President of India has approved NC Karmali's appointment as the part-time government nominee director on its Board.
On technical setup, support on the counter could be seen at Rs 338, followed by Rs 330 and Rs 322 levels. And, a decisive close above the Rs 345 zone is required for further upside.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a decent spurt from the bottom made near Rs 250 level. It has gained strength to breach above its previous peak level of Rs 345 on intraday basis and would need a decisive close above this Rs 345 zone to confirm a breakout. Currently, with near-term support maintained at around Rs 338 level and strength indicated, next higher targets visible are Rs 370 and Rs 395 in the coming days."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 330 and resistance at Rs 360. A decisive close above Rs 360 level may trigger a further upside till Rs 380. The expected trading range will be between Rs 310 and Rs 400 for a month."
AR Ramachandran from Tips2trades said, "RVNL is bullish but also overbought on daily charts with next resistance at Rs 366. Investors should keep booking profits as a daily close below support of Rs 322 could lead the stock to a lower level of Rs 252 in the near 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, project and contract management.
The government owned a 72.84 per cent stake in the state-run firm, based on the March 2024 quarter shareholding pattern.