Jupiter Wagons Ltd shares on Tuesday slipped 5.73 per cent to settle at Rs 662.05. At this price, the stock has declined 11.50 per cent from its all-time high of Rs 748.05, a level seen earlier this month on July 5. Despite the mentioned fall, the multibagger railway counter has rallied 106.96 per cent on a year-to-date (YTD) basis.
Bourses BSE and NSE have put the securities of Jupiter Wagons under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
"Jupiter Wagons is one of the railway stocks which has outperformed recently, given its strong order book. It is currently in a consolidation phase after hitting its all-time high," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Investors with a high-risk appetite can add the stock around the Rs 500 range, Bathini suggested.
The Kolkata-based company announced that it raised Rs 800 crore via the Qualified Institutional Placement (QIP) route last week. And, its order book value was Rs 7,101.66 crore as on March 31, 2024.
On technical setup, immediate support on the counter could be seen at Rs 630. And, resistance may be found at the Rs 700-730 zone.
"JWL has dropped sharply from its recent highs, showing a bearish gap on daily timeframes. The stock has initial support around Rs 630 level, which may help stabilise its decline in the short term. Overall, the trend appears to be moving from extremely bullish to a period of consolidation for the stock. Looking ahead, it is expected that the stock will face strong resistance in the Rs 700-730 range, and a new upward trend may only emerge after a clear breakthrough," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
One can consider buying the stock around Rs 600 for an upside target of Rs 750 in the near term, said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. Keep a strict stop loss placed at Rs 630 for this trade, Singh added.
Jupiter Wagons is a provider of comprehensive mobility solutions encompassing rail, road and marine transportation. The company also has a presence in the commercial electric vehicle (CEV) segment.
Meanwhile, Indian equity benchmarks were closed today due to Muharram. The domestic bourses will reopen on July 18, 2024 (Thursday).