Rail India Technical and Economic Service Ltd (RITES) share price spiked on Wednesday as investors reacted to news an MoU with Etihad Rail, the government-owned entity in charge of railway infrastructure in the United Arab Emirates. RITES share price traded at 325.10, up by 8.2 percent at the time of writing.
The surge was only the second daily win in the last eight trading sessions, underlining its significance in the stock’s recovery. RITES share price had been on a six-session losing streak before Tuesday, and even went down to three-month lows. Furthermore, it is also down by 2.3 percent in the last month. Nonetheless, the stock is still in profit this year, with its YTD returns at +24 percent.
The MoU with Etihad Rail has positioned RITES (NSE: RITES) at a vantage point in the development of major railway infrastructure projects in the UAE. The specific terms of reference of the agreement include rail repair services, supply or lease of rolling stock, modernisation of infrastructure, rolling stock repairs, operation and maintenance of railway infrastructure as well as consultancy and railway management services.
RITES share price has upside momentum as seen on the 30-minute chart below. The RSI indicator calls for further upside, and the buyers will be in control if the price stays above 322.80. With that in play, the first barrier will likely come at 327.70, but a stronger momentum could break above that mark to test the second resistance at 330.00.
Alternatively, moving below 322.80 will signal the onset of bearish control. In that case, the first support could come at 320.00. However, if the sellers extend their control, it could enable them to break below that mark and render the upside narrative invalid. Furthermore, the resulting momentum could extend losses to take the price lower to test the second resistance at 318.50.
This post was last modified on Oct 09, 2024, 12:40 BST 12:40