REC shares up 0.43% as Nifty gains

REC Limited, formerly Rural Electrification Corporation Limited, is a public Infrastructure Finance Company in India’s power sector. The company is a Public Sector Undertaking and finances and promotes rural electrification projects across India.

While REC is a Navratna Company functioning under the purview of the Ministry of Power. Shares of REC Ltd. gained 0.43 per cent to Rs. 127.0 in Monday’s trade. it hit a high of Rs. 128.25 and low of Rs. 126.0 during the session.

Moreover, on the technical charts, the 200-DMA of the stock stood at Rs. 122.04. While the 50-DMA was at Rs. 139.31. If a stock trades above 50-DMA and 200-DMA, it usually means the immediate trend is upward.

On the other hand, if the stock trades below 50-DMA and 200-DMA, it is considering a bearish trend, and if trades between these averages, then it suggests the stock can go either way. The stock traded above the signal line of momentum indicator moving average convergence divergence, or MACD signalling a bullish bias on the counter.

The MACD is known for a signalling trend reversal in traded securities or indices. It is the difference between the 26-day and 12-day exponential moving averages. A nine-day exponential moving average, called the signal line, is plotting on top of the MACD.

Moreover, the Relative Strength Index (RSI) of the stock stands at 40.65. Traditionally, a stock is considered overbought when the RSI value is above 70 and oversold when it is below 30. While the return on equity (RoE) for the stock at 14.04 per cent while the Return on Capital Employed (RoCE) was at 7.84. RoCE is a financial ratio that determines a company’s profitability and the efficiency of capital use. While the RoE is a measure of the profitability of a business in relation to equity.