RVNL and IRFC are seemingly on track to have a bullish journey both in short to medium term and long term. This surge in optimism is fueled by a confluence of factors: increased government spending on railway infrastructure upgrades, ambitious expansion plans, and policy initiatives aimed at modernizing the network.  Furthermore, RVNL and IRFC’s strong order books, stable revenue streams, and crucial roles in financing and executing these projects position them for significant future growth.

The fundamental factors and financial results, too, of both QoQ and YoY look reasonably good for both the companies.

However, the most interesting part is the technical chart of the two companies and how the movements are so much in tandem. Since the last financial year, both the stocks consolidate for a period of three months and see an upside. The pattern has been reflected in their movement for three consecutive periods now. The second consolidation period for RVNL and IRFC was between 11th September 2023 and 10th January 2024 before giving a breakout. Post the breakout both the stocks have yet again entered the consolidation zone since 23rd January 2024 till 18th May 2024. After a short fall, RVNL and IRFC took the support of SMA 44 on 14th May 2024 and moved up and quite similarly, RSI (14) for the two stocks are currently at 67 and 69 respectively, thereby indicating a movement towards the overbought zone. There are high chances of entering such a zone and sustaining for some time. If the trend continues and history does repeat then both the stocks can see an upsurge breaking past their highs in short to medium term.