Small-cap Defence Stock Sees 14% Surge Following Update on Major Order Win

Avantel Share Price Surges 14% on Receipt of ₹459.90 Crore Order

Key Highlights:

• Avantel share price jumped 14% to ₹138.90 apiece on the BSE on Wednesday
• Company received a contract worth ₹459.90 crore from Zetwerk Manufacturing Businesses Limited for the supply of Satellite Communication Equipment
• Strong trading volumes supported the rally, with 77 lakh equity shares exchanged on BSE and NSE on March 25

Market Sentiment:

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• The Indian stock market saw a rally, with the benchmark indices Sensex and Nifty 50 trading 1.5% higher each
• Broader markets outperformed, with Nifty Smallcap 100 and Nifty Midcap 100 indices surging more than 2% each

Avantel Share Price Performance:

• Avantel share price has fallen 7% in one month and 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 2,246% in five years

Technical Outlook:

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• 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
• Resistance for the stock is placed around ₹145, with the 200 DEMA at ₹150 being a key level to watch