RVNL shares zoom 414% from 52-week low, highly overbought on charts

Shares of state-run Rail Vikas Nigam Ltd (RVNL) have climbed 414% from their 52-week low touched in March last year. RVNL shares which fell to a 52 week low of Rs 56.15 on March 1, 2023 rose to a record high of Rs 288.65 today, clocking 414% returns during the period. With the railway sector stock surging 58% in the last nine days, it is now strongly overbought on technical charts as the relative strength index (RSI) of RVNL stands at 88.9. In the current session, the RVNL stock gained 18.44% to Rs 288.65.

Market cap of the firm rose to Rs 59,256 crore. Total 129.29 lakh shares of RVNL changed hands amounting to a turnover of Rs 348.12 crore.

At 12:57 pm, the railway stock was trading 16.76% higher at Rs 284.55. RVNL shares have a one-year beta of 1.1, indicating high volatility during the period.

Rail Vikas Nigam shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Abhijeet from Tips2trades said, "RVNL stock price is bullish and extremely overbought with next resistance at Rs 312 on the Daily charts. Investors should book profits at current levels as a Daily close below the support of Rs 254 could lead to target of Rs 218 in the near term."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher said, "RVNL can carry on its upward move. Next potential targets of Rs 254-282 levels may be achievable in the coming days. The near-term support would be Rs 212 zone and only a decisive breach below Rs 202 levels would weaken the trend."

The firm reported a 3.4% rise in profit at Rs 394.3 crore in Q2 against Rs 381.2 crore in the year-ago period. Net profit rose 15% sequentially from Rs 343 crore. Revenue climbed marginally to Rs 4,914.3 crore in Q2 against Rs 4,908.9 crore in the preceding year.

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.

Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.

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