February 29, 2024

RVNL, or Rail Vikas Nigam Ltd, witnessed a substantial dip of 7.51% in its stock price during Wednesday’s tumultuous trading session, hitting a day low of Rs 170. This descent marks a 14.72% decline from its peak of Rs 199.35 on September 12, 2023. Despite this recent setback, RVNL remains a formidable player, showcasing an impressive 202.76% surge from its yearly low of Rs 56.15 recorded on March 1.

Key Developments: JV Emergence and Project Dynamics

In a recent BSE filing, RVNL disclosed a joint venture with Karnataka Road Development Corporation Limited (KRDCL), clinching the bid for the Varkala Sivagiri Railway Station’s major upgrade in Kerala. This venture, with RVNL holding a 49% stake and KRDCL owning 51%, boasts an estimated project cost of Rs 123.37 crore.

Technical Analysis: Charting the Course

Analyzing the technical setup, the stock finds support in the Rs 170-180 range. Analysts caution that a dip below Rs 175 could trigger further declines. Despite this, RVNL is anticipated to encounter robust resistance around its one-year high before potentially breaching the Rs 200 threshold.

Osho Krishan, Senior Research Analyst at Angel One, notes, “RVNL maintains a secular uptrend, comfortably positioned above its major EMAs on daily charts. Chart patterns suggest a trajectory towards the Rs 200 milestone. Yet, a formidable resistance looms in the Rs 190-196 zone, marked by previous swing highs. On the downside, supportive levels extend from Rs 180-172, echoing a bullish sentiment.”

Expert Insights: Projections and Cautionary Measures

Jigar S Patel, Senior Manager at Anand Rathi Shares and Stock Brokers, offers a trading range prognosis, stating, “Support rests at Rs 170, while resistance lingers at Rs 200. Anticipated trading parameters oscillate between Rs 150 and Rs 220 for the upcoming month.”

Conversely, Ravi Singh, Founder of DRS Finvest, recommends a cautious approach, advising, “The stock might touch Rs 195 in the short term. Implement a stop loss at Rs 178.”

AR Ramachandran from Tips2trades issues a cautionary note, “RVNL confronts a robust resistance at Rs 198. A daily close below the Rs 175 support could precipitate a downturn, potentially reaching Rs 155 in the near term.”

RVNL’s Core Operations and Future Endeavors

As of September 2023, company promoters command a substantial 72.84% stake. RVNL serves as the execution arm for Indian Railways, operating on behalf of the ministry to fulfill assigned projects. Employing a turnkey model, the company manages the entire project lifecycle, encompassing design, contract awarding, and project management.

In conclusion, while market dynamics pose challenges, RVNL’s strategic ventures and technical resilience position it as a noteworthy player in the railway infrastructure domain. Investors are advised to conduct due diligence and seek professional advice before making any investment decisions. (Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice.)

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