Nagarjuna Construction Company Ltd (NCC) share price traded upward on Wednesday as the market reacted to news of a bumper contract win. The stock ended the session up by 1.7% with the price closing at Rs 208.30. The move also saw the stock hit seven week highs of Rs 218, underlining the strong momentum.
NCC won a Rs 10,804 crore (approximately $1.2 billion) advance work order contract from Bharat Sanchar Nigam Limited (BSNL). The contract involves the design, supply, construction, installation, upgrading and maintenance of the middle-mile network for BSNL’s the Uttarakhand Telecom, Madhya Pradesh, DNH, and DD Telecom Circles.
The momentum on NCC share price is upbeat, with the stock above the Volume Weighted Moving Average (VWMA) as well as the 10 and 20-day Exponential Moving Average (EMA) levels. In addition, the Average Directional Index (ADX) indicator reading is at 31, affirming a strong upside momentum.
NCC’s latest order comes on the heels of two other recent orders, including a Rs 1,480.34 crore from Bihar Medical Services and Infrastructure Corporation Limited (BMSICL) and Rs 2,129.60 crore from Andhra Pradesh Capital Region Development Authority. The strong order book favours NCC share price to stay on the ascending trajectory.
NCC Share Price Prediction
The momentum on NCC share price favours it to continue rising if action stays above the pivot mark at Rs 205. With the buyers in control, the stock will likely meet the first resistance at Rs 212. Breaking above that level will signal a stronger momentum that could drive the action higher to test Rs 219.
Alternatively, the momentum will shift to the downside if the price breaks below Rs 205. If that happens, the stock will likely find the first support at Rs 197. Breaking below that level will invalidate the upside narrative. Furthermore, an extended control by the sellers could send the stock lower to test Rs 190.
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