Rail Vikas Nigam (RVNL) delivered solid returns on April 24, the first day of the week, rising more than 13 percent to hit a record high of Rs 88. The stock has formed robust bullish candlestick pattern on the daily, weekly as well as monthly charts, with strong volumes.
RVNL has given a decisive breakout of long downward sloping resistance trendline adjoining highs of November 29 last year and April 21, 2023, with trading above all key moving averages on daily as well weekly charts (21, 50, 100 and 200 EMA - exponential moving average).
Momentum indicators RSI (relative strength index) at 80 mark and MACD (moving average convergence divergence) above zero line with positive crossover on the daily scale indicated positive mood in the counter. Even on the weekly timeframe, both have shown positive crossover.
Further, on the weekly charts, the stock has given a Saucer pattern breakout. On the lower time frame like daily, it has given a breakout of an Inverted Head & Shoulder pattern, which is a positive sign.
Given the momentum in the stock, experts expect Rail Vikas Nigam to hit Rs 100 mark in coming sessions.
"The momentum indicator RSI is also forming higher top higher bottom formation and sustaining above 70 mark indicating strong positive momentum of the stock. The stock has immediate resistance placed at Rs 100 & Rs 115 levels," Vidnyan Sawant, AVP - Technical Research at GEPL Capital said.
On the other hand, he feels it has strong support placed at Rs 76 and Rs 70 levels.
The stock witnessed a sharp rally from Rs 35 to Rs 84.10 in November last year, followed by a corrective decline of nearly 50 percent going by Fibonacci retracement. "The stock found a bottom near Rs 56 levels and then witnessed a rebound, moving above multiple moving averages of 50-day and 100-day. The stock price breakout has been accompanied by an exceptional increase in volume, confirming the price move," Foram Chheda, Technical Research Analyst and Founder of ChartAnalytics.co.in said.
She feels the momentum can continue towards Rs 93, but any price move below Rs 76 can be considered to move out of the stock.
Rail Vikas Nigam was trading at Rs 87.3 per share, up 12.65 percent on the NSE at 3.10 pm.
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