The 200-Day Moving Average is an important level for this Railway PSU; Here’s why

Shares of RailTel Corporation of India Ltd. gained as much as 5% on Tuesday, September 9, after the company announced on Monday that it has bagged multiple orders from various agencies. The gains are also seen on the back of very strong volumes.Within the first two hours of the trading session over 90 lakh shares of RailTel have already changed hands, in comparison to the 20-day average, which is just 5 lakh shares.

RailTel announced that it has won orders worth ₹713 crore, which includes an order from the State Project Director of the Bihar Education Project Council, an order for procurement, supply and installation of smart classrooms at Government Middle Schools worth ₹262 crore, along with another order related to procurement, supply and installation of smart classrooms at government secondary schools worth ₹257 crore.

Tuesday’s surge has also brought RailTel’s stock back to a very important trading level. The stock has its 200-Day Moving Average (DMA) of ₹367, and is within touching distance of that level.The significance of the 200-DMA is not just for the fact that it is a critical trading level for RailTel from a technical standpoint, but also because the stock has not traded above that level since July 30.

RailTel is a government owned telecom infrastructure services provider, currently trading with a market capitalisation of over ₹11,500 crore.

Shares of RailTel are trading 3.7% higher, marginally off the highs of the day, at ₹358.65. Despite today’s move, the stock is trading over 40% below its all-time high level of ₹618.