RVNL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | RVNL | Market Cap | 57,338 Cr. | Current Price | 275 ₹ | High / Low | 448 ₹ |
| Stock P/E | 59.6 | Book Value | 41.2 ₹ | Dividend Yield | 0.63 % | ROCE | 15.0 % |
| ROE | 14.4 % | Face Value | 10.0 ₹ | DMA 50 | 306 ₹ | DMA 200 | 336 ₹ |
| Chg in FII Hold | 0.31 % | Chg in DII Hold | -0.02 % | PAT Qtr | 264 Cr. | PAT Prev Qtr | 196 Cr. |
| RSI | 36.6 | MACD | -13.1 | Volume | 62,13,978 | Avg Vol 1Wk | 64,83,594 |
| Low price | 261 ₹ | High price | 448 ₹ | PEG Ratio | 19.8 | Debt to equity | 0.56 |
| 52w Index | 7.71 % | Qtr Profit Var | -10.4 % | EPS | 4.61 ₹ | Industry PE | 15.2 |
📊 Chart Analysis: RVNL is trading below both its 50 DMA (306 ₹) and 200 DMA (336 ₹), indicating a bearish setup. RSI at 36.6 suggests the stock is approaching oversold territory, while MACD at -13.1 confirms negative momentum. Bollinger Bands show price leaning towards the lower band, reflecting weakness. Current volume (62,13,978) is slightly below average (64,83,594), signaling reduced participation.
📈 Momentum Signals: Short-term momentum is weak with bearish signals. RSI near 30–35 could trigger a technical rebound, but MACD divergence remains negative.
💰 Entry Zone: 261 ₹ – 270 ₹ (near support levels).
📉 Exit Zone: 305 ₹ – 315 ₹ (resistance near 50 DMA).
🔎 Trend Status: The stock is consolidating with bearish bias, showing potential reversal only if price sustains above 306 ₹ with stronger volume.
Positive
- Strong quarterly PAT growth (264 Cr vs 196 Cr).
- ROCE (15%) and ROE (14.4%) indicate decent capital efficiency.
- FII holdings increased (+0.31%), showing foreign investor confidence.
Limitation
- High valuation with P/E of 59.6 compared to industry PE of 15.2.
- Debt-to-equity ratio of 0.56 indicates moderate leverage.
- Trading below both 50 DMA and 200 DMA, signaling weakness.
Company Negative News
- DII holdings declined (-0.02%), showing reduced domestic institutional support.
- Stock corrected significantly from 52-week high (448 ₹ to 275 ₹).
- Quarterly profit variation (-10.4%) shows earnings pressure.
Company Positive News
- EPS at 4.61 ₹ reflects consistent profitability.
- Dividend yield of 0.63% provides modest income support.
Industry
- Industry PE at 15.2 indicates relatively cheaper valuations compared to RVNL’s high P/E.
- Sector outlook remains stable with infrastructure demand supporting growth.
Conclusion
⚠️ RVNL is currently in a bearish consolidation phase. Entry is favorable near 261–270 ₹ support with a strict stop-loss. Exit should be considered near 305–315 ₹ resistance. Long-term investors may wait for confirmation of reversal above 306 ₹ with stronger volume before adding positions.