This railway PSU stock has erased nearly all gains in a month, what's next?
This railway PSU stock has erased nearly all gains in a month, what’s next?
Shares of state-run Rail Vikas Nigam Ltd. (RVNL) clocked flat returns in the last one month, gaining just 0.54%. The stock has fallen 7% in two consecutive sessions and is down 27% from its all-time high price of ₹345.50, a level seen earlier on January 23, 2024.
The drop in RVNL’s share price comes despite a ₹167.28-crore order win by the state-run company. The railway public sector undertaking (PSU) has received an order from South Eastern Railway to meet 3000 MT loading target.
The scope of the project involves Design, Supply, Erection, Testing and Commissioning for upgradation of Electric traction system for Rajkharsawan Nayagarh Bolani section of Chakradharpur division of South Eastern Railway.
The said project will be executed within a period of 18 months.
RVNL will announce its fourth-quarter (Q4 FY24) earnings next week on May 15.
“For the last three months the stock price of RVN) is trading in consolidation phase and investor are looking for its quarterly result,” said Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio.
Sinha recommended investors to remain invested in RVNL and take a call once the quarterly results are out.
On technical setup, Prashanth Tapse of Mehta Equities said the stock is trading well above its major support mark of 250 on its daily time frame charts.
“With the RSI (14) around 45, the stock indicates slightly oversold conditions, making it appear to be a good buy with a strict stop loss of 250 for potential upside targets of 290 and 295. Volumes in Friday’s session were nearly 50% of its average (30-day) traded volume, which also indicates some momentum drying away on the stock,” Tapse said.
Shares of RVNL ended Friday’s trading session up 0.21% at ₹261.60.