Are railway stocks ready for a BIG rally? RVNL, IRCTC in focus

The stock market has risen in the last few days, especially after the ceasefire between India and Pakistan, the market rose rapidly. During this period, the shares of companies from many sectors including financial and auto sector have given good returns to the investors. However, the investors' maximum attention was on the shares of the defense sector, which saw a strong rise. However, in the meantime there is silence in the shares of a railway sector.

Also Read: Sensex is trading 100 points down at 82,250: Buying in realty, auto and metal sectors However, now good signs are being seen in railway stocks. The upward trend has started once again in railway stocks, so we can see a new trend in these stocks. Select stocks of the railway sector include IRCTC, IRFC, Railway Vikas Nigam and other stocks.

'Defined Railway Equal Weighted Index'

Since there is no railway-related index from major exchanges like NSE or BSE, Moneycontrol has prepared an index - 'Defined Railway Equal Weighted Index' to track this emerging sector. The index is constructed using 11 stocks - BEML, Container Corporation of India, IRCON International, IRCTC, Indian Railway Finance Corporation, Jupiter Wagons, RailTel Corporation of India, RITES, Rail Vikas Nigam, Texmaco Rail Engineering and Titagarh Rail Systems.

Also Read: Cochin Shipyard Stock Soars 9% After Q4 Results and Dividend The Defined Railways Index has recently given some encouraging technical signals. The index found strong support at the 200-week exponential moving average (200WEMA) channel, which can be expected to give further momentum.

Summary

Since defense sector stocks are on the rise, it is important to proceed with caution in the case of railway stocks. Although this new trend is promising, it is still in its early stages. In such a situation, for those who are ready for medium to long term investment, railway stocks can provide a potential opportunity.