Shares Of This PSU Multibagger Has Slipped 7% In A Week

Rail Vikas Nigam Limited (RVNL) has given investors multibagger returns in the past year. The railway sector company’s shares have given returns of nearly 112%, according to BSE Analytics, as of May 13. The stock has, however, slowed its pace and has witnessed a dip of 7.49% in the past week.

The stock has fallen despite bagging a ₹38.10 crore contract from the South East Central Railway. Market experts believe that the stock is undergoing correction after it hit its 52-week high of ₹345.10 apiece.

RVNL Share Price Strategy

Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, has shared his strategy for trading RVNL’s shares. The market expert has said that the stock is undergoing correction after a vertical rally and has said that the ₹280-290 zone is the resistance for the stock, according to a report by Business Today. He has also commented on the trajectory of the stock and said that if the stock price falls below ₹260, it can plunge to the ₹245 level immediately. The expert has shared that a strategy of ‘Buy on dips’ and ‘Sell on rise’ is suitable considering the present levels.

“RVNL has undergone a price-wise correction phase following 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 resistance 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,” Krishnan said.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, has shared his investment strategy for investing in RVNL’s stock and has said that the stock can be bought at the ₹260 price level and has set a target price of ₹295 for the stock.

“Anyone wishing to buy the share can consider buying it at a price of around Rs 260 for an upside target of Rs 295,” Singh said.

RVNL Share Price History

RVNL’s shares have performed well in 2024, with the scrip hitting its 52-week trading high of ₹345.10 per share in January. The stock has gained 40.43% year-to-date as per BSE Analytics. The stock has zoomed 723.83% in two years and has gained 1062.73% in five years.

On Monday, May 13, the stock closed at ₹255.80 apiece on the BSE, closing 2.07% lower after opening at ₹261.70 apiece.