RVNL share price touches lifetime high after 175% rally in one year. Should you book profit?

RVNL share price has been in an uptrend since October 2022. Ahead of ushering in Q3FY24, RVNL share price came out of the base building mode and gave a breakout at ₹36 apiece level. Since then, it has remained an idea 'buy on dip' stock for investors. However, it seems that the stock still has some upside potential. RVNL share price today opened upside and went on to touch an intraday high of ₹205.40 per share level, which is a new lifetime high for this railway stock.

According to stock market experts, RVNL share price is ascending due to the Government of India's (GoI's) focus on rail infrastructure. As RVNL would be one of the beneficiary companies due to this GoI's move, the market has gone bullish on RVNL and other railway stocks. They said that one should hold the stock as it may continue to rise till the Union Budget 2024.

Triggers for RVNL share price rally

Asked about the reasons for the rise in RVNL share price, Saurabh Jain, Vice President — Research at SMC Global Securities said, "Railway stocks are rising for the last few quarters as the market is bullish on these shares after the GoI announced to focus on rail infrastructure. The GoI has recently declared fresh funds for the development of rail infrastructure in India. RVNL would be one of the beneficiary companies of this move. So, the market is bullish on RVNL shares as well. This uptrend may continue till the Union Budget 2024 but after that, the stock may take some pause once the schedule for Lok Sabha Elections 2024 is declared."

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Expecting a further rise in RVNL share price, Sumeet Bagadia, Executive Director at Choice Broking said, "RVNL share price is looking positive on chart pattern. RVNL shares have strong support placed at ₹190 apiece levels. Those who have this stock in their portfolio, are advised to hold the scrip for a short-term target of ₹210 and ₹220 maintaining stop loss at ₹190."

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RVNL share price history

In the last one month, RVNL share price has rallied over 12 per cent whereas, in the last six months, it has surged over 65 per cent. In the last one year time, RVNL share price has shot up to the tune of over 175 per cent.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.