Avantel share price jumped over 14% in early trade on Wednesday after the company announced receipt of a significant order. The small-cap stock surged as much as 14.8% to ₹138.90 apiece on the BSE.
The rally in Avantel share price today was supported by strong trading volumes. Around 77 lakh equity shares of the company were exchanged on BSE and NSE on March 25, as compared with its one week average trading volumes of 16 lakh shares, and one month average volumes of 13 lakh shares.
Aerospace and defence company, Avantel said it received a contract worth ₹459.90 crore from Zetwerk Manufacturing Businesses Limited.
The order is for the supply of Satellite Communication Equipment, along with one year comprehensive onsite warranty and five years comprehensive Annual Maintenance Contract (AMC) support.
Meanwhile, the rally in the Indian stock market today also lifted sentiments. The benchmark indices, Sensex and Nifty 50, were trading 1.5% higher each. The broader markets outperformed as the Nifty Smallcap 100 and the Nifty Midcap 100 indices surged more than 2% each.
Avantel Share Price Performance
Avantel share price has fallen 7% in one month and has declined 14% on a year-to-date (YTD) basis. The defence stock has dropped 25% in six months, but has jumped 38% over the past two years. The smallcap stock has delivered multibagger returns of 447% in three years, and a staggering 2,246% in five years.
Technical Outlook
Avantel share price has seen a strong gap up opening and is up 10% backed with strong volumes.
“The bullish gap left around ₹125 - is likely to act as strong support. We are seeing a fresh buy crossover in RSI and buying may come at lower levels. On the flip side, 89-Day EMA around ₹145 can act as resistance for the stock,” said Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.
According to Ruchit Jain, Head, Equity Technical Research, Wealth Management, Motilal Oswal Financial Services Ltd, Avantel share price has seen a pullback move today along with the broader markets, but the overall trend has been negative for the stock in the recent past.
“Hence, the follow up move will be important to see for any confirmation on trend reversal. The support for Avantel stock price is placed around ₹115 whereas the 200 DEMA at ₹150 is the resistance,” said Jain.
At 9:50 AM, Avantel share price was trading 10.70% higher at ₹133.95 apiece on the BSE.
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