RVNL, TWL, Rites: Railway stocks back on bull's radar, may rise up to 25%

Railway related stocks are poised for next leg of upside, shows techncial charts

Shares of railway-related stocks have brought back the trading excitement among retail traders after skyrocketing to their new all-time highs in recent sessions.  Rail Vikas Nigam, Ircon International and Titagarh Wagons continue to scale uncharted territories by soaring up to 10 per cent in a session. 

Rail Vikas Nigam and Titagarh Wagons have gained 58 per cent since the start of the current year and continue to trade with robust bullish sentiment. Barring, Texmaco Rail & Engineering that declined close to 5 per cent; Ircon International and Rites soared 22 per cent and 14 per cent, respectively.

Here’s the technical out of these railway related stocks:-

Rail Vikas Nigam Ltd (RVNL)

Likely target: Rs 135

Upside potential: 20%

The stock has ruled an immense breakout of the “Rectangular “patter, as per the weekly chart. Hereon, as long as the stock defends the Rs 80-mark, the short-to-medium trend may see higher levels in coming sessions.

The stock is headed to Rs 135 level, as per the weekly and daily chart. The upward bias is well bolstered by rising volumes. CLICK HERE FOR THE CHART

Titagarh Wagons Ltd (TWL)  

Likely target: Rs 400

Upside potential: 20%

The “Higher High, Higher Low” formation has driven the stock to higher levels and continues to bolster the lower supports. The Relative Strength Index (RSI) has seen bullish momentum in the overbought category, with selling pressure failing to derail the price action the positive sentiment. 

The immediate support falls at Rs 300 mark, and unless this is broken, the trend might end up seeing Rs 400 levels, as twe the weekly chart. CLICK HERE FOR THE CHART

Ircon International Ltd (IRCON)

Likely target: Rs 85

Upside potential: 20%

The stock has absorbed all the selling pressure emerging between Rs 65 to Rs 60 in recent sessions and has delivered a bullish breakout. The trend is robust, with upside bias headed in the direction of Rs 85.

Support for the stock exists at Rs 65, and the momentum indicator, the Moving Average Convergence Divergence (MACD) should support any decline, as it holds the positive momentum over its zero line. CLICK HERE FOR THE CHART

Texmaco Rail & Engineering (TEXRAIL) 

Likely target: Rs 86

Upside potential: 25%

There is an “Inverse Head and Shoulder” breakout on the daily chart, which suggests a move in the direction of Rs 68 level. The volumes have seen an upward spike in the late sessions that further reassures the willing of the market participants in the upward rise. 

The support for the stock is set at Rs 50, which needs to be adhered on a closing basis. The stock is well trading above the 200-day moving average (DMA) placed at Rs 49.50, which also adds to the bullish sentiment. CLICK HERE FOR THE CHART

Rites Ltd (RITES) 

Likely target: Rs 430

Upside potential: 11%

Shares of Rites are striving to overcome the hurdle of Rs 385-mark, Once this selling hurdle gets conquered, the breakout shall see the counter reaching a new historic peak of Rs 430-mark.

Unless the stock falls beneath the 200-DMA mark of Rs 325, the price action denotes a positive bias to defeat the hurdle of Rs 385. After hitting a new all-time high, the trend for the stock shall further continue to rise upward from a medium-term perspective.  CLICK HERE FOR THE CHART