RVNL share price maintained its uptrend in Tuesday’s trading session, as it edged higher by 1.2 percent at the time of writing to trade at Rs 613.35 The company rose by 9.7 percent on Monday, meaning that it has recovered the losses incurred during last week’s downtrend that saw it erase 10 percent of its value. The latest run is propelled by news that Rail Vikas Nigam Limited had secured a Rs 739 crore contract for the development of distribution infrastructure for Himachal Pradesh central zone.
The Himachal Pradesh State Electricity Board Limited (HPSEBL) awarded the contract to RVNL after it emerged as the lowest bidder. The 24-month project is part of the state’s initiative to upgrade its power distribution system to enhance service efficiency.
The RVNL price momentum on the 2-hour chart below has recently crossed above the Volume Weighted Moving Average (VWMA) indicator. This is supportive of control by the buyers, and the upside will likely continue if the price stays above VWMA. In addition, the Relative Strength Index (RSI) is at 61, signaling a stronger upward momentum. Notably, the share price is marginally above the Rs 600 psychological mark, and a stay above that level could be significant to maintaining the upside view.
The momentum on the 30-minute RVNL price chart suggests further upside above the Rs 611.60 pivot level. That could see the establishment of the first barrier at Rs 622.50, but extended control by the buyers could break above it to test the next resistance at Rs 634.05.
Alternatively, the sellers will likely take control if the share price moves below Rs 611.60. In that case, the downward momentum could find the first support at Rs 603.70. However, if the sellers extend their control, they could breach that mark, thereby invalidating the upside narrative and potentially building as stronger downside momentum to test Rs 594.05.
This post was last modified on Sep 18, 2024, 13:16 BST 13:16