RVNL shares down 19% from record high. Good time to buy?

Shares of Rail Vikas Nigam Ltd (RVNL), a state-run entity, are currently in a consolidation phase after experiencing a 19% decline from their record high of Rs 647, reached on July 15 this year.
The stock has been trading within the Rs 500 to Rs 550 range and was recently seen at Rs 523.10, down 1.25% for the day on the Bombay Stock Exchange (BSE).
RVNL shares exhibit a one-year beta of 1.45, indicating significant volatility in their price movements. Technically, the Relative Strength Index (RSI) is currently at 43.9, suggesting that the stock is neither overbought nor oversold.
Furthermore, RVNL is trading below its 5, 10, 20, and 30-day moving averages but above the 100, 150, and 200-day averages.
Mandar Bhojane, an Equity Research Analyst at Choice Broking, told Business Today that RVNL’s stock is in a consolidation phase with a sideways trend, forming an inside candlestick pattern.
“A breakout above the resistance level of Rs 550 could lead to short-term gains, targeting Rs 600 and Rs 625. On the downside, immediate support at Rs 500 could be an attractive entry point for investors looking to buy on dips. Given the RSI at 39.28, indicating weak momentum, I recommend a stop-loss at Rs 460 to manage risk,” he added.
On the other hand, Gaurav Bissa, VP at InCred Equities suggested that RVNL has benefitted from the railway sector’s growth and has successfully maintained a strong upward trajectory since 2023.
“Currently, it is approaching support levels at the 89 EMA on the daily chart and the 21 EMA on the weekly chart, both around the Rs 490-500 zone. This could act as a critical support level, potentially pushing the stock towards Rs 580-590. However, a drop below Rs 490 alongside an RSI below 30 could lead to a decline towards Rs 450,” he told Business Today.
Despite the steep fall from its all-time high, analysts suggest that the overall trend remains positive.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
As the executing arm of Indian Railways, RVNL is tasked with project execution for various initiatives assigned by the ministry. The company handles projects from inception to commissioning, covering design, contract awarding, and project management. Investors are weighing the prospects of RVNL amid its current consolidation phase and potential for recovery.