Rail Vikas Nigam Limited (RVNL)
Introduction
Within one year, the share price of this government-owned company RNVL has soared by 370%. Let's analyze this stock in detail and find out what lies ahead for it in the near future.
Company Overview of RVNL
In the year 2003, the Government established Rail Vikas Nigam Ltd (RVNL) . A major part of its business is to implement railway infrastructure projects assigned by the Ministry of Railways, including doubling, gauge conversion, new lines, electrification, major bridges, workshops, production units, and freight revenue sharing with the railways as part of the concession agreement signed with the Ministry.
Below is the Current Share Holding Pattern of the company
I
image Source :- Moneycontrol
78.20% Shares of the company are with Government of India
Image Source :- Moneycontrol
5.65 % Shares are with LIC of India
Image Source :- Moneycontrol
Total Number of Shares which are with major share holders are
78.20+5.65 = 83.85
Below are Some Pros for the Company
Image Source :- Screeners.in
Price Chart Analysis of RNVL Monthly Chart
RNVL is moving up with a very strong uptrend of 72% angle which is very close to the Gann angle 1:1 exhibiting a very strong up trend in the stock price.
Support and Resistance Levels for RNVL
RNVL has a strong support at Rs 120 levels and a second Support can be seen at Rs 80 Levels.(Daily Chart)
The Charts exhibits a Three White Soldiers Candlestick Pattern which signifies a strong upward trend in the stock.
Moving averages and Indicators for RNVL
The Stock is trading above its 22 Days EMI as well as 9 Day EMI which again signifies a strong upword momentum.
Stochastic levels are at 85.61 which comes under Overbought levels which is a bit concerning.
Conclusion and Trading Strategy :-
With the stock's impressive upward trajectory and positive prospects, a recommended trading strategy is to go long.
In other words, the stock should be purchased and held with the expectation that its value will rise over the long term. A long position appears favorable given the company's recent performance, but more research and analysis is needed to assess its fundamentals and growth prospects.
Note :- As with any investment, exercising caution and considering risk management practices is important.
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