- Summary:
- RVNL share price has risen by more than 117 percent in 2024, and Rs 688 crore contracts won in June are likely to keep it rising.
Rail Vikas Nigam Limited (RVNL) share price was up by 1.3 percent in Tuesday’s intraday trading session, trading at Rs 395.60. The session saw the share price cross the Rs 400 mark for the first time in two weeks, as it rose to Rs 405.00 before easing down. The RVNL share price rose by 4.1 percent last week and the bulls will be keen to sustain the momentum. Notably, RVNL has risen by 117 YTD, signaling a bullish control of the market.
The latest upsurge by RVNL is powered by news that the company had emerged as the lowest bidder for an Rs 160 contract floated by East Coast Railway. The contract for the provision of automatic block signaling system with dual MSDAC and alteration, and will be implemented over a period of 24 months. This marks a continuation of a good run by the state corporation, which reported Q4FY24 revenue growth of 17.4 percent to Rs 6,714 crore.
A week ago, RVNL won a Rs 138 crore contract by Central Railway to upgrade an existing 1×25 kV electric traction system to a 2×25 kV AT feeding system. The company also announced that it had won an Rs 300 crore contract issued by the Bangalore Railway Corporation for the electrification of phases 2A and 2B of the third rail track electrification. That brings the value of RVNL’s contract wins in the last two weeks to Rs 648 crore. That is likely to provide propulsion for further gains in the near-term.
Technical analysis
The buyers are currently in control of the RVNL share price, with the pivot likely to be at 394.05. The upside momentum is likely to continue if the price remains above that mark, but could meet the first resistance at 399.35. A break above that mark will strengthen the upward momentum, and could push the price to test 405.65. Alternatively, a move below 394.05 will favour the sellers to take control, and the downside will likely find the first support at 388.20. Extended control by the sellers at that mark will invalidate the upside narrative, and could build the momentum to test 382.50.
