The Railway PSU stock also hit a new 52-week high of Rs 130.2 per share on BSE.
RVNL stock has jumped 291 percent in the last one-year period and analysts suggest investors should not invest in it anymore.
Shares of Rail Vikas Nigam Limited (RVNL) closed 0.65 percent lower at Rs 129.35 apiece on BSE on Thursday ending its gaining streak for the three consecutive sessions. The stock also hit a 52-week high for the second straight day in Thursday’s trade.
The stock gained 5 percent in early trade to reach a fresh 52-week high of Rs 139.50 per unit on BSE in intraday trade on Thursday before closing lower.
On Wednesday’s trade, the Railway PSU stock also hit a new 52-week high of Rs 130.2 per share on BSE.
Shares of RVNL have gained over 25 percent in value in the past one week and more than 71 percent in the past three months.
The RVNL shares have given a good return to investors in recent weeks despite a subdued market. RVNL stock has jumped 291 percent in the last one-year period and analysts suggest investors should not invest in it anymore.
Market experts suggest that the investors should now book profits and adopt a ‘Buy on Dip’ strategy.
RVNL, the infrastructure arm of Indian Railways, undertakes the projects for building new lines, doubling of tracks, railway electrification, metro projects, construction of major bridges, workshops, cable stay bridges and institution buildings.
Analysts suggest that though the stock has given good returns it has entered the overbought territory which could make investment risky. There is a high possibility that the stock will see a decline soon.
Pravesh Gaur, Senior Technical Analyst, Swastik Investmart, suggests that investors should adopt a buy on dip strategy for RVNL stock.
According to Jigar S Patel, Senior Manager, Technical Research Analyst, Anand Rathi Shares & Stockbrokers, the Rail Vikas Nigam Limited stock is not a good buy at current levels. Therefore, the investors must wait until the stock hits a price of Rs 90, then this stock can be included in the portfolio for a long term.
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