- A healthy order pipeline and a breakout from a long-running consolidation underscore RITES share price upbeat sentiment.
RITES Ltd share price was back in the spotlight on Wednesday, with its share price surging over 7% to around ₹296. Investors are cheering after the company bagged two significant orders—one international and the other domestic. The resulting sentiment has sent a clear signal that business momentum is gaining steam.
The upbeat momentum is a result of positive catalysts on both international and domestic fronts. First, there’s the African locomotive overhaul contract and secondly, the Tumakuru station redevelopment. These new deals have reinvigorated investor confidence in the company’s growth trajectory and could push RITES share price higher in the coming days .
In the first instance, RITES (NSE: RITES) announced that it had won a contract worth $3.6 million to overhaul ALCO locomotives for African Railway Company. The contract will involve supply, commissioning and warranty package, with the project timeline set at nine months. The second contract is to be implemented closer home, where a RITES- Aryan Joint Venture has won a ₹37.81 crore order from South Western Railway for the redevelopment of Tumakuru Railway Station.
On the technical front, RITES share price broke out of a seven-week consolidation phase, supported by strong trading volumes. In addition, it created a bullish gap-up move, signaling the potential onset of an extended upside momentum. Ultimately, long term performance will likely come down to execution of contracts and margins, but the near-term outlook holds much promise.
RITES Share Price Prediction
RITES share price pivot mark is at ₹293.45 and action above that level favours the buyers to stay in control. The momentum will likely encounter initial resistance at ₹297.20. Breaking above that level will signal a strong momentum that could push the price higher to test ₹300.
Conversely, going below ₹293.45 will invite the sellers to take control. That will likely see primary support established at ₹290. Breaking below that level will invalidate the upside narrative. In addition, an extended control by the sellers could push the action lower to test ₹287.40.
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