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RVNL Shares Jump on ₹968 Crore Rail Contract
Rail Vikas Nigam Limited (RVNL) shares jumped over 6.11% on Friday, reaching an intra-day high of ₹311.85. The stock's rise followed the company's announcement that it was the lowest bidder for a ₹968 crore Engineering, Procurement, and Construction (EPC) contract.
Awarded by East Coast Railway, the project involves developing the 3rd and 4th railway lines for 385 kilometers along the Nergundi-Barang and Khurda Road-Vizianagaram sections. Expected to be completed within three years, the work includes constructing major bridges over the Birupa, Mahanadi, Kathjori, and Kuakhai rivers.
Analyst View: Caution on Resistance Levels
Despite Friday's gains, RVNL shares are still about 30% below their 52-week high of ₹447.8, recorded on May 20, 2024. The stock showed continued positive trading.
Hitesh Tailor, a technical research analyst at Choice Broking, observed RVNL consolidating near ₹305. He noted the stock is stabilizing around its 200-week Exponential Moving Average (EMA), with accumulation seen between ₹250 and ₹280.
However, Tailor cautioned that momentum indicators are weak. He identified a supply zone between ₹360–₹400, emphasizing that a decisive break above ₹400 is needed to signal a structural trend reversal. He recommended long-term investors maintain a wait-and-watch strategy for confirmation of a sustained rally.
Growing Order Book Bolsters RVNL
This new contract significantly adds to RVNL's order book. It follows a recent ₹242 crore deal from South Central Railway for Overhead Equipment (OHE) system upgrades. These wins highlight RVNL's key role in developing India's railway infrastructure and modernizing its rail network.