Railtel is the all-new favourite stock among traders; what are they expecting?

Railtel has registered a 28-week cup pattern breakout with massive volumes this week.

Railtel has been on traders’ watchlist for some time now, as they watch it soar over 6% in the past 2 weeks. The fresh interest has led to a strong breakout from its 28-week-long cup pattern with massive volume. Such a breakout is deemed very positive over the medium term as the outlook for the stock remains positive among the investors.

Railtel is one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fibre network on exclusive “Right-of-Way” along railway tracks. Being a prominent leader in its sector, the company enjoys strong demand for internet networks and services in rural as well as in urban India. The fundamentals of the company have grown in the past consecutive years, which indicates its strong presence in the market. Domestic institutions have been steadily increasing their holdings over the past few quarters.

Technically, the stock has witnessed good buying interest post the breakout. The 14-period daily RSI (69.50) shows strong strength in the stock and is in bullish territory. The ADX (30.95) is pointing northwards which indicates strong trend strength. The OBV Is rising and depicts massive buying interest from the market participants. The +DMI is well above the -DMI.

Interestingly, the elder impulse system indicates a fresh buy. Meanwhile, the stock also trades above all its key short-term and long-term moving averages. On Thursday, the stock surged over 3% and currently trades above its prior swing high level. In a nutshell, with growing fundamentals and bullish price pattern and technical indicators, the stock is expected to perform well on the exchanges in times to come. 

In the past three months, the stock has seen strong buying as it jumped over 22%, thus outperforming the broader market and most of its peers. Currently, the RAILTEL share price trades at Rs 123 level on NSE. Long-term investors as well as momentum traders should keep an eye on this stock to track its development!