This ADAG stock is on a roll; lets know the tailwind of the stock

The stock of Reliance Infrastructure made a high of Rs 108.65 and thereafter, it tumbled to the level of Rs 58 in a span of 44 trading sessions. However, lately, this ADAG stock is back in action and on Tuesday, it got locked at its upper circuit.   

The stock of Reliance Infrastructure has continued its upward trajectory for the fourth straight day and it is up by nearly 19 per cent in the last four trading sessions. More importantly, the stock has touched its upper circuit limit in the last three trading sessions.   

The tailwind, which spurred the momentum in the stock of Reliance Infrastructure, was the arbitral award which Supreme Court upheld in favour of Reliance Infrastructure Limited’s subsidiary Delhi Airport Metro Express Private Limited (DAMEPL). Delhi Metro Rail Corporation is directed to pay damages of Rs 2,950 crore plus interest up to the date of payment to DAMEPL. The proceeds from the arbitral award are to be utilised for debt reduction.   

Interestingly, the stock with this strong upmove is trading comfortably with a short-term moving average of 20-DMA and more importantly, the curve of this moving average is rising upwards. Furthermore, the stock is approaching towards a 50 per cent retracement level of the prior downswing.