RVNL shares slip 7% in 2 days despite order win; what's next for this rail PSU?
RVNL shares slip 7% in 2 days despite order win; what’s next for this rail PSU?
Shares of Rail Vikas Nigam Ltd (RVNL) slipped 3.39 per cent in Friday’s trade to hit a low value of Rs 252. At this price, the stock has slipped 6.67 per cent in just two straight sessions and 27.08 per cent from its all-time high price of Rs 345.60, a level seen earlier this year on January 23.
The back-to-back drop in share price came despite an order win by the state-run firm. The rail PSU has recently bagged a Rs 167.28-crore order from South Eastern Railway “to meet 3000 MT loading target”. RVNL is scheduled to come up with its fourth-quarter (Q4 FY24) results on May 15.
On technical setup, immediate support on the counter could be seen at Rs 260, followed by major support situated at the Rs 245-250 zone. And, a decisive breach above Rs 275 is required for further upside.
Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, said, “RVNL has undergone a prise-wise correction phase after a strong vertical rally from Rs 200 to Rs 345. For now, the counter hovers near Rs 260, breaching which it may plunge towards Rs 245 on an immediate basis. On the higher end, the Rs 280-290 zone is likely to act as a sturdy hurdle in the near period. It is advisable to have a pragmatic approach with a view of ‘Buy on dips’ and ‘Sell on rise’ considering the mentioned levels.”
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, “One can considering buying the stock at Rs 266 for an upside target of Rs 295. Keep stop loss placed at Rs 250.”
Vaishali Parekh, Vice-President – Technical Research at Prabhudas Lilladher, mentioned that the counter has strong support around Rs 245 levels.
AR Ramachandran from Tips2trades said RVNL has strong resistance at Rs 277. A daily close below support of Rs 260 could lead the stock to a lower level of Rs 217 in the near term, he added.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “Support will be at Rs 260 and resistance at Rs 275. A decisive close above Rs 275 level may trigger a further upside till Rs 295. The expected trading range will be between Rs 250 and Rs 300 for a month.”
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.
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