Ramco Systems bags multi-million dollar order, stock consolidating at breakout levels

A mid-cap IT consulting and software company, Ramco Systems, has won order multi-million-dollar software deal from AP Cargo Logistic Network, Philippines. The company is a domestic provider for express logistics for air cargo and other goods. The stock opened on a positive note, traded higher washing off two days' losses, but witnessed a retreat and closed just 1.3 per cent higher.

AP Cargo Logistic Network will use the logistic software developed by Ramco Systems to rationalise its freight operations across the country. Complying with AP Cargo’s statutory requirements, Ramco will render its unified, mobile-friendly modules for transport management, hub management, warehouse management, fleet management, visibility and also rating and billing, finance and accounting, combined with end-to-end HR and payroll.

After hitting 52-week low on June 28, 2018, the stock of Ramco Systems bounced back to form a rounding pattern at the lower levels, after breaching its major resistance at Rs 387 level. However, the stock resisted in-between 38.2% and 50% retracement of the prior downward rally from near Rs 521 to 52-week low levels and retreated up to Rs 375 level. Now, the stock is in a consolidation phase. The stock breached its 100-day EMA and is heading towards its 200-day EMA resistance level. The stock has also witnessed rising volumes in the last few sessions with the 14-period RSI quoting at 58 level.