Railway stocks crash: Following the sell-off in the Indian stock market, railway stocks came under the bear’s radar during Thursday’s trading. Flagship railway stocks IRFC, Ircon International, Rail Vikas Nigam Limited (RVNL), Railtel Corporation, Container Corporation of India, etc., are trading in the red. Ircon shares witnessed maximum beating and crashed over 6%. However, IRCTC shares are in the green zone by a whisker.
According to stock market experts, railway stocks are falling due to negative secondary-market sentiment. These railway stocks had witnessed a volume rally on Wednesday after the weekly and monthly expiry on Tuesday. This could also be a reason for profit-booking in railway stocks, as market sentiment is turning weak on Thursday.
Why are railway stocks falling today?
Speaking on the reason for the drift in the railway stocks, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “Railway stocks are falling because the market sentiments are weak. So, today’s fall can be attributed to the weak trends on Dalal Street. However, there is also one technical reason. On Tuesday, there were monthly and weekly expirations. So, on Wednesday, railway stocks witnessed a strong volume rally, which spurred profit-booking when the market mood changed to bearish.”
Gorakshkar said that railway stocks’ fundamentals are still intact and that this dip should be taken as a value-picking opportunity, and advised investors to buy Texmaco Rail and Engineering. He said that the company is in the metro rail business and that there is strong demand for metro railway projects and ongoing projects, which are expected to fuel the company’s order book in the medium to long term.
Texmaco Rail share price target
Asked about the technical chart pattern of Texmaco Rail shares, Sumeet Bagadia, Executive Director at Choice Broking, said, ‘Texmaco Rail shares are looking positive on the technical chart. Those who have this stock in their portfolio are advised to hold long for the target of ₹150. However, they must maintain a strict stop-loss at ₹108. The stock is trading around ₹125, providing a good opportunity to accumulate for the existing shareholders.”
On the suggestion to the fresh investors, Sumeet Bagadia said, “A fresh investor can buy Texmaco Rail shares at the current market price and hold for the target of ₹150. They also need to maintain a stop-loss at ₹108.”
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
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