REC Share Price Declines 6.4%; Key Support at Rs 408 (52-week Low) for Upside Target at Rs 504
REC Shares declined by 6.4 percent on Friday as majority of PSU stocks witnessed selling. REC now has a major support around its 52-week low of Rs 408.30. The stock could see a bounce from lower levels and technical charts suggest that immediate resistance is near Rs 504. PSU stocks are facing increased trader interest while leads to higher volatility among these stocks. Taking into consideration the technical levels, traders can plan profitable trades in these counters.
REC Limited, a leader in power sector financing, continues to attract investor interest with its robust financial performance and technical resilience. Trading between Rs 454.45 and Rs 492.20, the stock offers a dividend yield of 3.70% and a P/E ratio of 8.13, making it an attractive value investment. REC’s 52-week range of Rs 408.30 to Rs 654.00 highlights its growth potential. This article delves into REC’s financial metrics, evaluates recent technical trends, and provides actionable insights for investors, while also exploring its competitive position in the power financing sector.
Stock Performance Overview
Key Financial Metrics
| Metric | Value |
|---|---|
| Open | Rs 490.10 |
| High | Rs 492.20 |
| Low | Rs 454.45 |
| Market Cap | Rs 1.21 lakh crore |
| P/E Ratio | 8.13 |
| Dividend Yield | 3.70% |
| 52-Week High | Rs 654.00 |
| 52-Week Low | Rs 408.30 |
Performance Highlights
REC’s low P/E ratio of 8.13 underscores its value proposition, especially in the power financing sector.
The stock’s current trading range reflects investor caution but also offers opportunities for accumulation.
Recent Analyst Recommendations
ICICI Direct
In a recent report dated January 2025, ICICI Direct reiterated a Buy rating for REC with a target price of Rs 550. The recommendation cited REC’s stable loan book growth and strong focus on renewable energy projects.
HDFC Securities
HDFC Securities, in its December 2024 analysis, highlighted REC’s increasing role in financing power infrastructure projects, setting a target price of Rs 545.
Technical Analysis: Key Patterns and Levels
Candlestick Patterns
On the daily charts, REC has formed a Doji Pattern, indicating market indecision. This pattern, combined with rising volumes near Rs 480, suggests potential bullish momentum if a breakout occurs.
Fibonacci Retracement Levels
Using the 52-week high of Rs 654.00 and low of Rs 408.30, the Fibonacci retracement levels are:
| Level | Price (Rs) |
|---|---|
| 23.6% | 466.19 |
| 38.2% | 504.15 |
| 50.0% | 531.15 |
| 61.8% | 558.15 |
| 76.4% | 596.11 |
The stock is trading near the 23.6% retracement level of Rs 466.19, suggesting strong support at lower levels.
A breakout above Rs 504.15 could push the stock toward Rs 531.15.
Support and Resistance Levels
Immediate Support: Rs 466.19
Immediate Resistance: Rs 504.15
Key Resistance: Rs 531.15
Actionable Insights for Investors
Short-Term Strategy
Investors can look for a breakout above Rs 504.15, targeting Rs 531.15, with a stop-loss at Rs 466.
Medium-Term Potential
Accumulating the stock near Rs 480 could yield returns as the stock trends toward its 50% retracement level at Rs 531.15.
Long-Term Opportunity
REC’s alignment with India’s energy transition goals and focus on renewable energy financing positions it as a strong candidate for long-term portfolios.
