RVNL’s stock price has faced considerable tension in recent weeks, despite a stunning rally earlier this year. From the onset of 2021, the stock has skyrocketed over 200%.
However, the pace has decelerated lately. In the last 30 days alone, the stock has seen a decline of approximately 2.5%. Moreover, of the recent ten sessions, eight ended unfavorably for the NSE: RVNL stock.
What Industry Experts Advise: Research head at Lakshmishree, Anshul Jain, comments on the surprising 158% eight-week rally that led to a peak stock price of ₹645. Since then, Jain observes that the stock seems to have plateaued.
Jain predicts that as the railway stock progresses into the ninth week, a limited trading range is evident, between the highs of ₹645 and the July 8 low of ₹508.
An impending two to three months of range-bound movements are predicted due to the sideways consolidation happening in the stock. While volume activity is strikingly quiet, periodic spikes on the daily chart are noted, but these phases quickly lose steam.
“Given the absence of sustained spikes, the trend may stay neutral with no immediate likelihood of a clear directional breakout. Investors are advised to proceed with caution,” cautions Jain.
Riyank Arora, a technical analyst at Mehta Equities, posits a different perspective; he sees RVNL with an overall positive trend. According to Arora, the key thresholds for RVNL stand at 510 for support and 620 for resistance. Pointing out the stock’s proximity to the 550-level support zone, he sees a potential bounce from this point.
Arora suggests adopting a buy-on-dips strategy, as long as the 510 support remains robust. “A breach above 620 could open gates to more upward momentum. Investors should keep a close watch on the support levels for possible entry points.” he emphasizes.
Price Movement: As of Friday afternoon’s trading hours, RVNL’s share prices have bumped up by 0.68% at ₹555.75
