RAIL  VIKAS  NIGAM  LTD.-BUY

Target (Rs) Upside % CMP Stop Loss Risk %
₹ 206
17%
₹178
₹ 166
-5.7%

Technical View

  • The pattern analysis on the weekly outlook shows that the primary price trend is sloping  positively with momentum following the stage 2 breakout complemented with improving outperformance compared  to the benchmark index of Nifty 50 .
  • With the primary trend ascending on a steeper angle, the price action has been exhibiting the behavior of supply absorption at elevated levels. The behavior is anticipated on the basis of bases trimming by time and price correction and at elevated levels indicates that the smart hands are taking opportunity of every dips for potential accumulation.
  • The price action surfing at the back of its shorter term WEMAs further indicates strength in the trend as it offers no major drawdowns while its has mounted 332% following the stage 2 breakout.
  • The 50 volatility period volatility remains at lower levels so the chances of any unruly move is less likely. The price displays relatively higher EPS and price strength along with buyers demand.

We recommend a buy on RVNL from CMP—174 for a potential 17% on the upside against a 5.7% risk.

 

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