Multibagger RVNL shares sink by 14%; what to expect? 

RVNL shares: At today’s high cost of Rs 126.55, the stock was down 13.71 per cent from its 52-week high of Rs 146.65, a level witnessed on July 24, 2023. 

That said, the multibagger share earned 314.23 per cent from its one-year low cost of Rs 30.55 on August 23, 2022. The state-run firm has recently scored multiple contract wins.

The counter’s 14-day comparative strength index (RSI) on technical setup was 51.37. A level under 30 is defined as oversold, while a value exceeding 70 is deemed overbought. The firm’s share has a price-to-earnings (P/E) ratio of 20.41 against a price-to-book (P/B) value of 4.20.

Also read: HSBC reports double profit after rising interest rates 

RVNL shares have an average target cost of Rs 130, Trendline data revealed, suggesting a possible upside of 4 per cent. It has a one-year beta of 0.78, meaning low volatility on the counter.

Vaishali Parekh, Vice-President – of Technical Research at Prabhudas Lilladher, stated, “The stock, after the decent spurt to touch the peak zone of Rs 146, has resisted and witnessed some profit booking to take support near the Rs 119-120 levels.”

“Once again, the bias has started showing improvement. A reversal is indicated, with the target expected at Rs 135-140 levels from here on, with the RSI showing a buy signal with much upside potential. The support would be strong near Rs 119 zone.”

Source – BT