Chart of the Day - 24th December 2022 Elliott wave view: RVNL Expect Short Term Weakness to Continue
Elliott Wave View: RVNL, Wave (5) of 4 in Play?
Dec 24th, 2022, By Dinesh Naidu
Medium-term Elliott wave view on Rail Vikas Nigam Ltd (RVNL) suggests that the decline to Rs.84.1 (29th Nov'22) ended wave 5 of 3, downside rally is still in progress with internal subdivision as a A-B-C (Corrective) Elliott wave structure.
We assume that cycle from the 20th of June'22 (Rs.29.05) low is unfolding as 5 wave impulse structure. We expect to see a price to pull back in ((4)) before rally takes place towards new highs.
Rating: Accumulate, BUY
Buying Range: Around 55 to 53 Zone
3 & 6 M Price Target: Rs. 90, 97, 118
Potential Upside (%): 57 to 64
Exhibit 1: Elliott Wave Analysis
Exhibit 2: SMC + Price Action: RVNL has been down well in a weak market looking for some opportunity to resume the uptrend. Can be bought if the price sustains above 57 levels.
Exhibit 3: Candlestick Analysis with Indicators: RSI in Daily time frame is below 50 level which indicates the stock might fall till oversold zone.
Rail Vikas Nigam Ltd was Incorporated in 2003 by the Govt. of India, it is engaged in the business of implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, Production Units and sharing of freight revenue with Railways as per the concession agreement entered with Ministry of Railway.
New lines: This includes augmenting the rail network by laying new railway lines to achieve a seamless bi-modal
Doubling: It involves the provision of additional lines by way of doubling the existing routes to enable the Indian Railways to ease out traffic constraints.
Gauge conversion: This includes the conversion of meter gauge lines to broad gauge railway lines.
Metropolitan transport projects: Company takes up projects to set up metro lines and suburban
Railway electrification: The Company is engaged in the electrification of current un-electrified rail network and electrification on the new rail network.
Workshops: This includes manufacturing facilities and workshops for repairing and manufacturing rolling stock.
Others: This includes the construction of traffic facilities, railway safety works, other electrification works, training works, surveys, construction of bridges including rail over bridges, etc.
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