This is RVNL’s biggest single-day gain in two months. The stock is also in focus after it received the Letter of Award for an order worth ₹239 crore from the Southern Railway.
Post Tuesday’s surge, shares of RVNL have broken above their 50-Day Moving Average, placed at levels of ₹259. Despite today’s surge, shares of RVNL are still down 5% for the month of May. The stock had gained 70% in January, followed by a 20% drop in February. It was flat in March and gained 13% in April.
IRFC, the financing arm of the Indian Railways has also had a quiet few months after a 76% rise in January. The 6% gain on Tuesday is also the most in a single-day for the company in two months. Despite today’s surge, the stock is still down 1.5% for the month of May.
The Relative Strength Index (RSI) on the charts of both IRFC and RVNL have crossed the 50 mark post Tuesday’s surge. An RSI reading above 70 indicates that the stock is in “overbought” territory.
RailTel has emerged as the outperformer among the railway PSUs, having gained as much as 9% on Tuesday, the most since March this year. The stock is still down 3% in the month of May, having corrected 20% in March and gained 10% in April. On a year-to-date basis, the stock is an underperformer, having gained only 10%, while peers like IRFC and RVNL are up over 50%, courtesy of the surge in January.
Shares of IRCON International are also trading with gains of close to 7%. The stock is down 4% for the month of May after Tuesday’s gains. The stock is up 37% so far on a year-to-date basis.
