RVNL share price gained over 3% in early trade on Tuesday, breaking its nine-session losing streak. The PSU railway stock rose as much as 3.66% to ₹236.30 apiece on the BSE.
RVNL stock price has declined more than 19% in the past nine consecutive trading sessions and hit a fresh 52-week low of ₹227.05 apiece on June 8.
The latest gains in RVNL shares comes after the state-run company announced winning of a significant order.
(RVNL), the railway PSU, informed that it received LOA from South East Central Railway worth ₹221.33 crore.
The new order is for the replacement of panel Interlocking with Electronic Interlocking, all indoor and outdoor gears, OFC huts, construction of S&T service buildings & electrification of S&T service buildings including cabling works in adjoining block sections of several stations of Bilaspur Division of South East Central Railway.
The time period by which the order is to be executed is 730 days.
Technical Outlook
RVNL share price has corrected nearly 27% from its recent swing high over the past six weeks, highlighting the emergence of strong overhead supply and a clear deterioration in price structure, noted Anshul Jain, Head of Research at Lakshmishree Investments.
“The magnitude and pace of the decline suggest distribution rather than routine profit booking, with momentum now favouring the bears. Recent rebounds appear corrective in nature and lack the volume characteristics typically associated with sustainable reversals. The ₹245 – 250 zone now acts as a significant resistance band and any rally toward this area is likely to attract fresh selling pressure,” said Jain.
From a risk-reward perspective, he believes such pullbacks may offer opportunities to reduce long exposure.
“Unless RVNL stock price reclaims this resistance decisively, downside risk toward the ₹210 zone remains elevated,” said Jain.
RVNL share price has fallen over 23% in one month, and has declined 15% in three months. The railway PSU stock has dropped 35% on a year-to-date (YTD) basis, while it has plunged 45% in one year.
However, RVNL share price has jumped 87% in three years and has delivered multibagger returns of 654% over the past five years.
At 9:45 AM, RVNL share price was trading 2.81% higher at ₹234.35 apiece on the .
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