RVNL Share Price: Railway stocks are witnessing profit booking after a sharp rally last week. Such pre-Budget rally in railway counters are not new. Historical
data shows that volatility in railway stocks emerge one to five weeks before the Union Budget, driven by expectations of increased government support for the sector. Railway stocks such as IRFC, RVNL, IRCTC and RailTel Corporation have consistently shown improving return profiles as the Budget approaches. According to Pradip Halder, founder of PHD Capital, this trend suggests that market participants are factoring in potential railway-focused announcements ahead of the Budget. RVNL, once a retail favourite, has regained momentum ahead of the Budget. The stock surged more than 20 per cent over the past few trading sessions. However, after the sharp rise, the counter is now seeing some profit booking and consolidating at higher levels, indicating that investor interest in railway stocks remains intact ahead of the Budget event. "RVNL shares are currently seeing some profit booking after a sharp rally in recent sessions. The railway stock has gained over 20 per cent in the last few days, prompting short-term investors to book profits. View on RVNL remains positive from a long-term perspective. The railway stock is undergoing a phase of consolidation after the recent rally. RVNL has formed a strong base around the Rs 320 level and has bounced back from this zone," the expert said. “RVNL could be a good investment pick for investors who have a time horizon of at least one year. In my view, the stock can comfortably move towards Rs 400 and may even go beyond that,” he said. RVNL shares on Tuesday (December 30) closed 2.07 per cent lower at Rs 360 on NSE. From a technical standpoint, Halder said that RVNL’s chart structure is not looking very attractive at the moment but "if I talk about value investing, I think it is a stock that one should have in portfolio for long term." The analyst added that the company’s fundamentals and sector outlook support the long-term growth. Halder further said that railway stocks may remain volatile in the near term as the Union Budget approaches. He said expectations of major announcements for the railway sector could lead to sharp price movements in the stock. “Investors should be prepared for volatility in the short term. My suggestion is to stay invested in RVNL for the long term, at least for a year. The stock remained in a consolidation phase for a long time and now appears ready to show upward moves,” he added. VIDEO
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
