RVNL‘s share price rebounded strongly in the green on Monday, looking set to halt its two-straight day losing streak.

What Happened: Shares of the railway major have remained under pressure ever since the recent Budget brought little in terms of material positives for the sector.

In the last five sessions, the stock has gone down around 9%. The stock had climbed up sharply ahead of the budget in anticipation that the railway budget would see an increase.

What Are Analysts Saying? “RVNL experienced a peak near 645 and has since entered a corrective phase, indicating a period of price decline following this high,” said Jigar S Patel, senior manager – technical research analyst, Anand Rathi Shares and Stock Brokers. He added that the stock is positioned on the middle Bollinger Band, a technical indicator representing a moving average that often acts as a support or resistance level.

“This middle band suggests that RVNL might be stabilizing or finding a temporary equilibrium after its recent decline. Concurrently, the hourly Stochastics, another technical indicator used to gauge momentum, has recovered from oversold conditions and is now approaching the overbought zone. This shift implies that the recent downward pressure may be easing, and buying momentum is increasing,” the analyst told Benzinga India.

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He said a decisive daily close above ₹583 would be significant, as it could signal a potential continuation of the upward move, with the next target around the 640 level. This level represents a possible resistance where the stock might encounter selling pressure.

On the downside, support is expected near 550, providing a cushion against further declines. This support level is crucial for maintaining the stock's stability and preventing further correction. “Therefore, monitoring these key levels — 583 for a bullish breakout and 550 for support — will be essential for understanding RVNL’s potential price movements in the near term,” Patel added.

“Based on the latest technical analysis for RVNL, the stock is exhibiting a positive trend with a key support level at ₹530 and a resistance level at ₹600,” said Riyank Arora, technical analyst, Mehta Equities. He added that given the current bullish momentum, there is potential for RVNL to reach the ₹600-₹640 range.

He further said that investors should target the upside towards ₹600-₹640 while maintaining a strict stop-loss at ₹530 to mitigate risks. “Overall, RVNL appears to be in a favourable position for further gains, provided the support level holds,” Arora said.

Price Action: RVNL’s share price was up 3.79% to trade at ₹573.30 on Monday afternoon.

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