Black Knobby thing
Yes it is a red dot sight. A Trijicon. Only for daytime use though (As if the Elcan wasn't enough). It will barely clear the hood of the CNVD.
Although this is a night time rifle. During the day the CNVD would be put away and the Elcan would be used to acquire targets. The red dot is for close quarters, kind of a nice overkill.