Shares of the Rail Vikas Nigam Limited continued to trail in the red on Tuesday going down over 3% to hit an intraday low of ₹265.75.

What Happened: After marking an around 13% jump in April, the railway stock has started May on a weak note. Since the start of the month, shares of the company have gone down around 6%. The company is also scheduled to post its earnings for the quarter ended March next week on May 15.

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What Are The Charts Saying? “The stock is trading above an important support zone of 263 – 267 on its daily timeframe charts. With the RSI (14) around 53, the overall momentum is expected to pick up in the next few days,” said Riyank Arora, technical analyst, Mehta Equities. He added that with the trendline support at the 265 mark, the overall risk-reward now looks favourable for buying with a small stop loss kept at 260 for potential upside targets of 295 and 310.

Anshul Jain, head of research at Lakshmishree, said that since hitting its peak of 345 in January 2024, RVNL share price has seen around 38% correction. “Now, on the weekly chart, it’s forming a rounding bottom, possibly transitioning into a cup and handle pattern. The neckline, currently at 295, is pivotal. A breakout above this level could indicate renewed bullish momentum, targeting around 275. Investors are urged to observe this development closely, as it may present lucrative opportunities,” he added.

Price Action: RVNL’s share price was down 2.66% to trade at ₹268.95 in the afternoon hours of trading on Tuesday.

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