Indian benchmark indices settled sharply lower on Monday as the US tariff threats dented the sentiments at Dalal Street, beside consistent FII selling and falling Indian rupee. Traders are shunning riskier assets and moving towards the same haven assets like gold. BSE Sensex tanked 548.39 points, or 0.70 per cent, to end the session at 77,311.80. NSE's Nifty50 cracked 178.35 points, or 0.76 per cent, to settle at 23,381.60 for the day.
Some buzzing railway stocks including Indian Railway Catering and Tourism Corporation Ltd, (IRCTC), IRCON International Ltd and Rail Vikas Nigam Ltd (RVNL) are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:
Rail Vikas Nigam | Caution | Resistance: Rs 385 | Support: Rs 360
RVNL appears slightly bearish as it is testing the critical support level at Rs 385 at the current juncture. A wait-and-watch approach is advisable for now. If RVNL manages to close above Rs 385, fresh momentum could be triggered, making it a potential long opportunity. However, if the stock closes below Rs 385, it may weaken further, likely heading toward Rs 360 within 2-3 sessions. Traders should monitor price action closely at this level, as a breakdown could invite further selling pressure. Conversely, a strong close above Rs 385 may signal bullish continuation. Risk management is crucial, and traders should act based on confirmation rather than anticipation to avoid unnecessary exposure to volatility.
Indian Railway Catering and Tourism Corporation | Buy | Target Price: Rs 830 | Stop Loss: Rs 730
IRCTC formed a bullish harami pattern near a key historical support level from September 2023, aligning with the S3 Camarilla quarterly pivot. This strengthens its significance as a reversal signal. Furthermore, the daily RSI has shown bullish divergence, indicating a shift in momentum in favor of buyers. The combination of these technical factors—bullish price action, strong support, and RSI divergence—suggests a potential upside move. Based on this setup, a long position is recommended in the Rs 765-780 range. A stop-loss is set at Rs 730 on a daily closing basis to manage risk, while the target is Rs 860, offering an attractive risk-reward ratio. Traders should watch for confirmation of strength above resistance levels.
IRCON International | Caution | Resistance: Rs 185-200 | Support: Rs 170
IRCON is trading near the crucial support level of Rs 185. A wait-and-watch approach is advisable for at least 2-3 sessions to confirm price stability. If IRCON sustains above Rs 185, fresh buying can be considered, with an upside potential toward Rs 200-205. However, if it closes below Rs 185, weakness may extend, pushing the stock toward Rs 170. This level acts as a critical pivot, making it essential to observe price action before entering a trade. Traders should look for confirmation before initiating positions, as premature entries could expose them to unnecessary risk. A decisive move in either direction will provide clarity on the next potential trend. Patience is key to ensuring a favorable risk-reward setup.