Rail Vikas Nigam Ltd Share Price can go down Up to Rs 143 on Next Week, know 3 confirmations
Rail Vikas Nigam Ltd. (RVNL) has been a focal point for investors and analysts alike, particularly due to its fluctuating share price and the implications for future trading. The stock has shown significant volatility, with recent trading sessions reflecting both gains and losses. This article delves into the current state of RVNL shares, recent market trends, and predictions for the near future.
Main Points
Today, RVNL shares are trading at approximately ₹559.5, reflecting a modest decline from previous highs. Over the past six months, the stock has surged by about 135.53%, showcasing its potential for growth. However, recent trading data indicates a slight downturn, with shares dropping 2% to hit a low of ₹566 during the last session on September 6, 2024.
The stock reached a record high of ₹647 on July 15, 2024, but has since corrected by about 12%. Analysts suggest that this decline may be a result of the stock being overbought, leading to a natural correction phase. Technical analyst Sarvendra Srivastava has advised investors to consider booking profits during any bounce-back, as the stock may experience a sideways to downward trend for the next three to six months.
Several analysts have weighed in on RVNL’s current valuation and future prospects. Antique Broking has issued a ‘Sell’ recommendation, setting a target price of ₹283 per share. They argue that the stock is overvalued, trading at high multiples of its expected earnings for FY26 and FY27. This perspective is echoed by concerns about the company’s future project inflows, which are estimated at ₹25,000 crore annually from FY25 to FY27.
Conversely, some analysts maintain a more optimistic view, suggesting that RVNL’s strong performance in recent years, including a 214% increase in share price year-to-date, indicates potential for recovery and growth. The relative strength index (RSI) currently stands at 53.1, indicating that the stock is neither overbought nor oversold, which could suggest a period of stabilization before any significant movements.
From a technical standpoint, RVNL shares are trading above their 50-day, 100-day, 150-day, and 200-day moving averages, but below their shorter-term averages (5-day, 10-day, 20-day, and 30-day). This mixed signal indicates that while the stock has strong long-term support, short-term trends may be less favorable. The stock’s beta of 1.3 suggests high volatility, which is a critical factor for investors to consider when making trading decisions.
Looking ahead, the consensus among analysts is cautious. With RVNL’s recent price action and the broader market conditions, investors may want to adopt a wait-and-see approach. The potential for a bounce-back exists, but the risks associated with overvaluation and market corrections cannot be overlooked.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
