RVNL and Ircon International registered decline on Friday. Both stocks had gained during trading session on Thursday as RVNL allocated a project in Madhya Pradesh to IRCON JV. On Friday, Rail Vikas Nigam closed one percent lower. The stock touched intraday high at Rs 367 before drifting to lows at Rs 350. Ircon International share price declined 2.37 percent to close the session at Rs 156. The stock is close to its 52-week lows at Rs 134 and the current technical charts suggest weakness in the counter. The stock has lost 31 percent valuation over the last one year.

IRCON-SSNR JV Secures Tunnel Construction Contract for Indore–Budni Railway Project

Infrastructure major Ircon International Ltd. (IRCON), in a joint venture with SSNR Projects, has been awarded a significant contract by Rail Vikas Nigam Ltd. (RVNL) for tunnel construction in Madhya Pradesh. IRCON holds a 70% stake in the joint venture (IRCON-SSNR JV), while SSNR Projects holds the remaining 30%.

The scope of the contract includes the construction of Tunnel T1 from chainage km 33+160 to km 34+400, and Tunnel T2 from km 57+400 to km 66+040, incorporating ballastless track systems. The project also involves formation work on the approaches to these tunnels.

These tunnels are a part of the electrified broad-gauge (BG) railway line being developed between Mangliyagaon (Indore) and Budni, spanning 198 kilometers across the Ratlam and Bhopal divisions of Western Railway and West Central Railway, respectively.

The total order secured under the IRCON-SSNR JV is substantial, with IRCON’s share amounting to Rs. 610.8 crore, based on its 70% stake in the partnership.

As of December 2024, IRCON reported a robust order book valued at Rs. 21,939 crore. The railways segment continues to dominate, contributing 78%, or Rs. 17,075 crore, of the total order backlog. The highways segment accounts for 22% at Rs. 4,775 crore, while other segments contribute Rs. 89 crore.

The latest contract win further strengthens IRCON’s foothold in the railway infrastructure sector and aligns with its long-term strategy of contributing to India’s high-speed rail and electrification goals.

Fibonacci Retracement Analysis: RVNL

Stock Price Details:

52-week High: Rs. 647.00

52-week Low: Rs. 245.00

Current Range Basis: Rs. 647.00 (High) – Rs. 245.00 (Low)

Price Differential: Rs. 402.00

Using the above, here are the key Fibonacci retracement levels for RVNL:

Technical Analysis: Ircon International Limited

Stock Overview:

Open: Rs. 160.00

High: Rs. 163.80

Low: Rs. 155.21

Market Cap: Rs. 14,710 crore

P/E Ratio: 19.23

Dividend Yield: 1.89%

52-week High: Rs. 351.60

52-week Low: Rs. 134.24

Candlestick Pattern Analysis

On the daily chart, Ircon International has recently shown the following candlestick behavior:

Bearish Engulfing Pattern (observed last week): A strong bearish reversal signal where a large red candle has engulfed the prior green candle. This suggests potential short-term selling pressure.

Long Lower Shadow: In the most recent session, a long lower wick indicates buying interest near the day’s low of Rs. 155.21, hinting at demand in lower zones.

Volume Analysis: Declining volumes in recent candles suggest that the downtrend may be losing momentum, but confirmation is required.

Conclusion: Caution is advised; a clear breakout or support hold is needed for directional confirmation.

Fibonacci Retracement Levels

Based on the 52-week high of Rs. 351.60 and low of Rs. 134.24, here are the critical Fibonacci retracement levels:

Interpretation:
The stock is now trading well below the 76.4% retracement level (Rs. 190.62), suggesting deeper correction. If Rs. 155–160 holds as a base, recovery could target Rs. 190–222 in a staged move. However, continued weakness could retest Rs. 145–148, near the 52-week low.

Support and Resistance Levels

Support Zones:

Immediate Support: Rs. 155.00 (Recent swing low)

Major Support: Rs. 145.00 (Next psychological and technical support)

Resistance Zones:

Near-term Resistance: Rs. 165.00 (Recent top and 5-day moving average)

Strong Resistance: Rs. 178.00–180.00 (Previous consolidation zone)

Trend Bias: The short-term trend is bearish, but approaching a critical zone where reversal could occur. Watch for a bullish close above Rs. 165 on volume as confirmation.

Investment Strategy & Key Takeaways

For Traders: Consider short-term buy positions only if the stock sustains above Rs. 165 with strong volumes. Downside break below Rs. 155 may invite further correction toward Rs. 145.

For Investors: Long-term investors may look to accumulate near Rs. 150–155 levels in staggered manner, given favorable valuations (P/E of 19.23) and dividend yield of 1.89%.

Risk Level: Moderate to High. Use stop-losses and confirm reversals with volume or momentum indicators like RSI.