RVNL share price sustained its upside on Monday, gaining 1.6 percent in the intraday session to trade at Rs 624.10. That was the second successive session of gains, restoring investor confidence after the company underwent a five session losing spree last week. Furthermore, it strengthens the prospects of RVNL retesting its all-time highs of Rs 647, registered a week ago.
The RVNL price recovery started on Friday following news that it had signed a Memorandum of Understanding (MoU) with Israeli firm, United Construction Limited for cooperation on various construction projects in Israel. In addition, an arbitration tribunal ruled in favour of RVNL’s Special Purpose Vehicle, Krishnapatnam Railway Company Ltd. (KRCL), which will see it get a Rs 584.22 crore compensation from India’s Ministry of Railways.
The MACD indicator has been above the signal line since July 4, signaling control by the buyers. Similarly, the Relative Strength Index (RSI) is at 75 as of this writing, strengthening the bullish view. However, at that level, the stock is well within the overbought territory, which potentially leaves little headroom for further gains. Having gone as high as Rs 637 on Friday, the next key barrier in the near-term will likely be at Rs 640. A move above that mark will be critical to clearing the path to retest the ATH.
On the chart below, the upside will likely continue if the RVNL share price stays above 620.30. With the buyers in control, the share price could encounter the first resistance at 630.75. A move beyond that mark will strengthen the upside momentum to potentially test the psychological barrier at 640.00. Alternatively, the sellers could take control if the price moves below 620.30. That could see the establishment of the first support at 610.10, but extended control by the sellers could breach that mark and invalidate the upside view. Also, it could potentially send the price lower to test 600.00.
This post was last modified on Jul 22, 2024, 13:47 BST 13:47