RVNL share price: RVNL was last seen trading higher than the 20-day, 50-day, 100-day and 200-day moving averages but lower than the 5-day moving averages. Shares of Rail Vikas Nigam Ltd (RVNL) returned to the negative zone in Friday's trading session, reversing their yesterday's gains. The stock, which snapped its 3-day declining trend in the previous session, today plunged 4.93 per cent to hit a day low of Rs 120.50 against a Thursday's close of Rs 126.75. At today's low price of Rs 120.50, the scrip has fallen 16.61 per cent from its 52-week high of Rs 144.50, a level seen on May 8. That said, the multibagger counter has surged 295.90 per cent in the past one year. The surge was a result of bagging multiple orders and acquiring 'Navratna' status.
Technical analysts largely felt that the stock looked 'bearish'. Support on the counter could be seen at Rs 118, followed by Rs 110 and Rs 100 levels. The stock has resistance at Rs 129. Two analysts suggested booking profits at current levels, while one advised to 'buy-on-dip'.
"On a daily scale, the stock has strongly formed a bearish engulfing pattern. So, at the current level, traders should book profit," said Ganesh Dongre - Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
"RVNL has surged over 80 percent in the last couple of trading weeks. Post such a steep upsurge, the counter entered the overbought territory and hence, one should not rule out the possibility of cool-off. Immediate support is placed around the Rs 110-100 zone in the comparable period," said Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One.
"RVNL stock price looks bearish on the daily charts with strong resistance at Rs 129. Investors should book profits at current levels as a close below the support of Rs 118 could lead to Rs 91 in the near term," said AR Ramachandran from Tips2trades.
"Rs 100 is a major support zone for any correction. Investors can follow the buy-on-dip strategy when taking a new position on the counter, said Pravesh Gour, Senior Technical Analyst at Swastika Investmart.
RVNL was last seen trading higher than the 20-day, 50-day, 100-day and 200-day moving averages but lower than the 5-day moving averages. The counter's 14-day relative strength index (RSI) came at 63.58. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 20.41. It has a price-to-book (P/B) value of 4.29.
The stock has an average target price of Rs 42, Trendlyne data showed, suggesting a potential downside of 65.29 per cent. The scrip has a one-year beta of 0.79, indicating low volatility.
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, projects and contract management.
Meanwhile, Indian equity benchmarks traded lower in afternoon deals, dragged by metal and energy stocks.