- Summary:
- RVNL share price has been on a sharp downward gradient since the beginning of September. However, that doesn't tell us the whole story.
RVNL share price continues to struggle from a long-running bear run that traces back to early September. The stock spiked up by 6.67 percent on Friday, but returned to the downside on Monday ahead of the dividend ex-date. A dividend ex-date is the date by which an investor needs to hold a company’s shares to qualify for the next dividend payment.
RVNL was down by 1.9 percent at the time of writing, trading at Rs 533.80. A break below Rs 520 would worsen the bearish momentum, as it has served as the medium-term support level since early July. At its current level, RVNL share price is below the 50-SMA (Rs 574) and 20-SMA (Rs 563), underlining control by the sellers.
Nonetheless, government-owned Rail Vikas Nigam Ltd (NSE: RVNL) has a healthy order book with multiple contracts in the bag. That will likely see most investors hold on to the stock, despite declining by more than 6 percent in the last month. Furthermore, the share price is at +193 percent year-to-date, showing a bullish undercurrent. However, a prolonged decline in the share price could trigger profit-taking.
RVNL share price forecast
RVNL share price has recently found upward momentum as signaled by the RSI indicator on the 30-minute chart. The upside will likely prevail above 530.70. With the buyers in control, the share price will likely move up to 539.90 to encounter the first resistance. However, if the buyers strengthen their momentum, the price action could break above the first barrier to test 547.70.
On the other hand, a move below 530.70 will favour the sellers to take control. If that happens, the first support could come at 519.95. However, prolonged control by the sellers could result in a breach of the support and invalidation of the upside narrative. Also, it could extend losses to test 512.15.
