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- The momentum on RVNL share price has fresh impetus as investors adopt an upbeat sentiment built on strong fundamentals.
RVNL share price ended the year on a high note, gaining 3.5% on New Year’s eve to close at Rs 422.70. The stock is attempting to reverse from a double-top pattern and -4.8% in monthly losses that have resulted in weak traction. Rail Vikas Nigam Limited has benefitted greatly from a strong order book and intensive infrastructure investment by the Indian government in 2024.
Despite its recent troubles, its strong fundamentals have helped the stock gain 132% year-to-date. The latest recovery results from a major contract win by the company. RVNL share price bumped on news that the company had won a Rs 137.17 crore contract from Central Railway.
RVNL (NSE: RVNL) was the lowest bidder in a tender for the design, supply, erection, testing and commissioning of 132/55 Kilovolt substations, sectioning posts and sub-stationing posts. RVNL has won two major contracts in succession, having announced that it also bagged a Rs 404 crore order from East Coast Railways on Monday.
Tuesday’s gain in the stock market paused a six-session losing streak and sets up a platform for a recovery in January. In addition, the Indian Government’s focus on infrastructure development provides a solid foundation for RVNL share price to sustain growth in the long term.
RVNL share price prediction
The momentum on RVNL share price calls for further upside if action stays above the pivot mark at Rs 419.25. The stock will likely encounter the first resistance at Rs 430.70 However, an extended control by the buyers could break above that level and open the pathway to move to the next barrier at Rs 439.80
On the downside, RVNL the momentum on will likely turn bearish if the price breaks below Rs 419.25. With the sellers in control, the stock will likely move to the first support at Rs 411.75. Breaking below that level will invalidate the upside narrative. Furthermore, a stronger downside momentum could take the price lower and test Rs 404.30.
