RVNL‘s share price has remained under pressure for the past few weeks. The stock witnessed an impressive rally in the first half of the year. Since the start of the year, the stock has gone up over 200%.

The momentum seems to have slowed down recently. In the past 30 days, the stock has gone down around 2.5%. In the past 10 sessions, the stock has ended lower on eight occasions.

What Are Analysts Saying: “After an impressive 158% rally over eight weeks, the stock reached a peak of ₹645, where it now appears to have topped out,” said Anshul Jain, head of research at Lakshmishree.

He added that as the railway stock enters into the ninth week, the price is trading within a tight range, constrained between the high of ₹645 and the low of ₹508 set on July 8.

See Also: Why These 2 Global Brokerages Are Strongly Bullish On Tata Motors, See Up To 30% Upside

This sideways consolidation suggests the stock may remain range-bound for the next two to three months. Volume activity is notably subdued, with occasional spikes seen on the daily chart, but these quickly lose momentum.

“Given the lack of follow-through on these spikes, the trend is expected to remain neutral, with no clear directional breakout anticipated in the near term. Investors should remain cautious,” the analyst added.

“RVNL is showing a positive overall trend, with key support at 510 and resistance at 620,” said Riyank Arora, technical analyst at Mehta Equities. Arora added that the stock is currently hovering near the immediate support level around 550, suggesting potential for a bounce from this zone.

“Technical indicators favour a buy-on-dips strategy as long as the 510 support holds firm. A breach above 620 could open the door for further upside momentum. Investors are advised to monitor the support levels closely for entry opportunities,” he added.

Price Action: RVNL’s share price was up 0.61% to trade at ₹555.35 in the afternoon hours of trading on Friday.

Read Next: Mutual Funds Dump Suzlon, NBCC, CDSL, Tata Tech Shares In August