Rail Vikas Nigam (RVNL) delivered good gains on the opening day of the week, April 24, jumping more than 13% to a record high of Rs 88. With large trading volumes, the stock has produced a powerful bullish candlestick pattern on the daily, weekly, and monthly timeframes.
The Railways of India has successfully risen above all important moving averages on daily and weekly charts (21, 50, 100, and 200 EMA - rapidly moving average) along with a downward-trending resistance trendline overlapping highs of November 29 last year and April 21, 2023.
The momentum indicators RSI (relative strength index) at 80 and MACD (moving average convergence divergence) above zero line on a daily scale showed a favourable mood in the counter. Even on a weekly basis, both have shown beneficial crossovers.
Furthermore, the stock has broken out of the Saucer pattern on the weekly charts. On a smaller time frame, such as the daily, it has broken out of an Inverted Head and Shoulder pattern, which is a good sign. Given the stock's growth, experts predict Rail Vikas Nigam will reach Rs 100 in the coming sessions.
"The momentum indicator RSI additionally formed a higher top higher bottom form and holding above the 70 mark, indicate that the stock is moving in an upward direction." "The stock's quick levels of resistance are Rs 100 and Rs 115," said Vidnyan Sawant, AVP - Technical Research at GEPL Capital. On the other hand, he believes it has solid support at Rs 76 and Rs 70.
The stock saw a rapid gain from Rs 35 to Rs 84.10 in November of the previous year, followed by a nearly 50% correct slump based on Fibonacci breakdown. "The stock found a bottom near Rs 56 levels and then rebounded, moving above multiple 50-day and 100-day moving averages." "The stock price breakout was accompanied by an unusual rise in volume, verifying the price move," stated Foram Chheda, Technical Research Analyst and Founder of ChartAnalytics.co.in.
She believes the trend will continue towards Rs 93, but any price move below Rs 76 should be regarded a sell signal. At 3.10 p.m. on the the National Stock Exchange, Rail Vikas Nigam was trading at Rs 87.3 per share, up 12.65 %.
