REC Limited shares closed with a decline of 6.5 percent on January 10. This week the stock saw a decline in 4 out of 5 sessions. Due to this, the company’s stock declined by 15% this week. With the fall on January 10, this stock has seen a correction of 30% from its recent high of Rs 654. The stock has reached ‘oversold’ category in the charts and its Relative Strength Index (RSI) had fallen to the level of 30. If the Relative Strength Index is below 30, the stock is considered ‘oversold’.
Heman Kapadia of DR Choksi Finserv says that the correction in REC and PFC shares may continue for some more time. He said, ‘In the last one and a half year, PFC shares had gone from Rs 80 to Rs 580. So, if a stock is moving so fast, in my experience it means it will be worth nothing in a year and a half.
It will not reach new heights and it will take time. However, recovery from the recent decline does not seem possible at present. As far as PFC is concerned, I would be quite surprised if it hits new highs in calendar year 2025. However, the correction will also take much less time, because it is a multibagger.
PFC shares also saw a decline of 13% this week. This stock is 30% below the peak of Rs 580. The Relative Strength Index (RSI) for PFC is already in the ‘oversold’ category. The company’s RSI is 27. When asked about REC, Kapadia said that REC and PFC are moving in the same direction.