REC stock is trading in a range with strong support at ₹339. Analyst highlights a buying zone at ₹360–₹370 and expects bullish momentum on a breakout above ₹415.

Rural Electrification Corporation (REC) shares may have fallen 7% in the last one month, but SEBI-registered analyst Krishna Pathak believes the long-term story remains intact. 

According to Pathak, the current price of ₹390 offers a compelling entry point, especially for investors looking to accumulate near the ₹360–₹370 zone where strong historical buying interest was seen.

Technically, the stock is range-bound — facing resistance near ₹415 and finding solid support around ₹339. The 9-week Exponential Moving Average, currently at ₹408.11, is acting as a resistance barrier.

The stochastic RSI is near the overbought territory, indicating potential short-term consolidation before any meaningful move. 

However, Pathak notes that a breakout above ₹415 could spark a rally, with sequential upside targets at ₹455, ₹507, ₹558, and ₹612. 

On the downside, a breach below ₹339 could lead to a deeper correction.

Fundamentally, REC posted a subdued March-quarter performance with moderated growth and disbursements. 

While margins and asset quality remained stable, the company revised its AUM growth guidance down to 11%-13% from the earlier 15%-17% during its May 14 earnings call.

Despite near-term concerns, data on Stocktwits shows that retail sentiment remains ‘bullish’ on this counter, suggesting continued investor interest in REC's long-term prospects.

REC sentiment and message volume on May 15 as of 1:20 pm IST. | source: Stocktwits

REC shares have fallen 21% year-to-date (YTD).

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