Titagarh Wagons, Texmaco Rail: Wagon manufacturers eye up to 14% upside

The stocks are exhibiting positive trend amid reports that Indian Railways is expected to add 100,000 wagons over the next three years

Railway-linked stocks have been in the limelight on the bourses as Indian Railways plans to add more fleets to the convoy.  According to a Business Standard report, it is expected to add 100,000 wagons over the next three years. This move emerges amid rising demand for coal freight. READ ABOUT IT HERE

The railway department has already floated a tender worth Rs 35,000 crore of wagons, which is in the pipeline since 2018, the report added.

Against this backdrop, should you add wagon stocks to your portfolio? Here's what charts say:
 

Titagarh Wagons Ltd (TWL)  
Likely target: Rs 120

Upside potential: 13%

After conquering the 200-weekly moving average (WMA) in mid-2021, the shares of Titagarh Wagons have managed to hold 50-WMA support, located at Rs 88.25 levels, during their current upward trend. The short-term support comes at Rs 93.60-mark, its 200-day moving average (DMA). If this support is maintained, the present trend reflects could take the stock to Rs 120-mark, as per the weekly chart.  CLICK HERE FOR THE CHART
 
Texmaco Rail & Engineering (TEXRAIL) 
Likely target: Rs 53 and Rs 55
Upside potential: 11% to 14%

The present daily chart structure exhibits a resistance in the range of Rs 46 to Rs 48. This coincides with the Relative Strength Index (RSI), which has severely failed to enter overbought category. Both these parameters indicate selling pressure at higher levels.

On the downside, the support is held at Rs 38 and then at Rs 36 levels. A breakout above Rs 48 may induce a bullish strength, taking the stock to Rs 53 and Rs 55. CLICK HERE FOR THE CHART