PSU Stock REC Ltd witnesses 6% decline in stock price, 15% decline in a week, hits oversold category

On January 10, 2025, REC Ltd, a subsidiary of Power Finance Corporation and a significant player in the finance and non-banking financial company (NBFC) sector, experienced a decline of over 6%. The stock has been on a downward trajectory, underperforming its sector by 2.54%, and has recorded consecutive declines over the last three days, resulting in a total drop of 7.95% during this period. 

On that Friday, REC Ltd.'s shares ended 6.5% lower and declined in four out of five trading sessions throughout the week, leading to an overall decrease of 15% in that timeframe. Over the past five weeks, the stock has also declined in four of those weeks. With Friday's drop, the stock has corrected 30% from its recent high of INR 654. 

According to the charts, the stock has just entered "oversold" territory, with its Relative Strength Index (RSI) falling to 30. An RSI reading below 30 indicates that the stock is considered "oversold."

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Despite the recent downturn, the stock maintains a high dividend yield of 3.45% at the current price. The stock's performance continues to be closely monitored as it navigates through these challenging market conditions.

With this, REC Ltd reached an intraday low of Rs 473.55, reflecting a decrease of 3.87%. The company's stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Over the past month, REC Ltd has seen a significant decline of 16.68%, compared to a 5.32% drop in the Sensex.

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