REC Reversal On The Cards? SEBI RA Recommends ‘Buy on Dips’ Strategy

Technical charts indicate a bullish reversal may be emerging for REC after a period of sustained downtrend.

According to the daily chart, the stock has been forming lower highs since reaching ₹407.65 on June 27. However, a possible double bottom formation is emerging near the ₹388–₹390 zone, which may signal a bullish reversal, noted SEBI-registered analyst Deepak Pal.

On Monday, the stock opened at ₹394.30, touched a high of ₹397.10, a low of ₹390.50, before closng at ₹393.65. Notably, the stock had earlier rebounded sharply from ₹388.60 on June 23 to ₹409.65, indicating strong buying interest at lower levels.

Technical indicators, such as the moving average convergence/divergence (MACD) and relative strength index (RSI), are beginning to show early signs of positive momentum, Pal said.

While minor dips may occur in the short term, the broader technical setup appears constructive for a long-term uptrend.

The analyst recommended considering a buy-on-dip approach with a stop loss at ₹385. If the reversal sustains, REC could move toward the ₹425 level in the coming sessions.

At the time of writing, REC shares were trading little changed at ₹390.90, having lost 22% year-to-date (YTD).

The state-owned Navratna company remains a fundamentally strong player in infrastructure financing, including sectors like roads, railways, and airports. The company reported a 28% growth in FY24 net profit at ₹14,019 crore and has a loan book of ₹5.15 lakh crore.

Backed by over 22% ROE, stable margins, and consistent dividends, REC is well-positioned as a long-term investment aligned with India’s infrastructure growth.

For updates and corrections, email newsroom[at]stocktwits[dot]com.