Rites Jumps On South Africa Locomotive Order; SEBI Analyst Sees Breakout Momentum Building

Shares of Rites climbed nearly 2% on Friday after the company said it received a Letter of Award from Talis Logistics, South Africa, for the supply and commissioning of overhauled in-service Cape Gauge ALCO diesel-electric locomotives worth $18 million. 

The delivery of the locomotives is expected to be completed within six to eight months from the receipt of advance payment, according to the company’s release.

SEBI-registered investment advisor Sameer Pande said the stock had already surged more than 6% earlier this week after the order announcement coincided with a high dividend payout at the company’s annual general meeting, boosting investor sentiment on both the fundamental and news flow fronts.

Technical View

Pande said Rites remains “mildly bullish” on the daily timeframe, trading above key exponential moving averages such as the 20-day exponential moving average (EMA). He added that strong volume and momentum indicators support the trend, with the relative strength index (RSI) rebounding from 40 to 46. 

The stock is also trading above the 20-day EMA and the volume-weighted average price (VWAP), while a breakout above ₹278, as indicated by the Supertrend indicator, would suggest strong positive momentum.

On the weekly timeframe, Pande identified strong support in the ₹230–₹210 range. Resistance is seen at ₹305–₹320, making these levels important markers for traders.

Pande described the overall trend for Rites as “sideways to positive,” with the technical picture supported by both momentum and volume indicators.

What Is The Retail Mood?

On Stocktwits, retail sentiment for Rites was ‘neutral’ amid ‘normal’ message volume.

Rites’ stock has declined 13% so far in 2025.

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