Todays Pick

Rail Vikas Nigam (₹37.1): Buy

Akhil Nallamuthu BL Research Bureau | Updated on October 27, 2021

 

The stock of Rail Vikas Nigam, after listing in April 2019 at ₹19, was struggling to move above the critical resistance of ₹30. But the stock witnessed strong buying resulting in a breakout of ₹30 in January.

Last week, it breached another hurdle at ₹34, which has been blocking the bulls since the beginning of the year. Thus, the stock has turned positive, and the likelihood of a rally is high.

Although it faced a price correction this week, bulls will be on the driver’s seat until the price stays above ₹30. So, the stock, currently trading around ₹37, may moderate to ₹34 and thereafter it can resume the move northwards. The RSI and the MACD support the bullish outlook.

So, traders can buy the stock at current levels and accumulate when it falls to ₹34. Place an initial stop-loss at ₹30. The stock is likely to touch ₹45 in the near-term, which can be the target. When the price moves above ₹40, revise the stop-loss to ₹37.

 

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on October 28, 2021

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