RITES Jumps 7% On Mega Orders: SEBI RA Prameela Balakkala Sees Bullish Breakout Above ₹304

RITES shares surged 7% on Wednesday, driven by two mega order wins. The company has received a purchase order worth $3.6 million from an African rail company for the supply of 2 fully overhauled ALCO locomotives for development in Zimbabwe, Mozambique, and Botswana. 

Additionally, its joint venture, RITES-Aryan, received a letter of award from South Western Railway for an order valued at ₹37.81 crore. The project involves the redevelopment of Tumakuru Station, including civil, signal, telecommunication, and electrical services. 

At the time of writing, RITES was the top trending stock on Stocktwits on Wednesday. 

On the technical charts, SEBI-registered analyst Prameela Balakkala highlighted the formation of a well-defined cup and handle pattern, indicating the potential of its bullish continuation. 

RITES stock is trading above its 20-day Exponential Moving Average (EMA), confirming its short-term strength. It is also trading above the 20-day Simple Moving Average (SMA), reinforcing the uptrend. Balakkala noted that the stock’s breakout attempts were accompanied by rising volume, suggesting institutional interest. 

 She adds that sustained volume above ₹304 is crucial for confirming a breakout.

Analysing momentum indicators, the stock’s Relative Strength Index (RSI) stands at 63.69, indicating a bullish territory, but not yet overbought. The Moving Average Convergence Divergence (MACD) shows a bullish crossover above the zero line.

Balakkala pegged key support at ₹270, which aligns with both the handle base and the 20 EMA zone, while resistance is identified at ₹304 (the breakout level), followed by a pattern target of ₹383.85.

For traders, she recommended buying only above ₹304, with confirmation from sustained price action and volumes. Balakkala pegged the mid-to-long-term price target at ₹380, with a stop-loss at ₹270 on a daily closing basis.

Fundamentally, RITES is a government-owned engineering consultancy with a focus on railways, metro, highways, and ports. They have a strong pipeline of orders from Indian Railways and international clients, ensuring revenue visibility.

With a zero-debt profile, RITES offered financial resilience and flexibility for future expansion. The company also offers a dividend yield of around 4%, reflecting consistent profitability and shareholder-friendly policies. 

Year-to-date, RITES shares have risen nearly 2%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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