Jupiter Wagons Ltd shares witnessed strong buying interest in Wednesday's trade. The stock soared 13.03 per cent to hit a day high of Rs 561.85. It was last seen trading 11.75 per cent at Rs 555.50. At this price, the scrip has gained 73.65 per cent in the calendar year 2024 so far.
"Railways stocks have been in a consolidation phase over the last three months. Most of these counters have been multibaggers in the past two years. Given the kind of earnings visibility and the Centre's focus towards the railway infrastructure, these stocks are best positioned for long-term growth. That said, there could be a valuation froth in a few. So, one needs to be stock specific and only individual stock valuations should be considered," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Bathini added that there is a greater emphasis on the rail infra theme, which is why these rail stocks are gaining momentum again.
Jupiter Wagons' stock saw high trading volume on BSE today as around 8.89 lakh shares changed hands at the time of writing this story. The figure was way more than the two-week average volume of 73,000 shares.
Turnover on the counter came at Rs 48.27 crore, commanding a market capitalisation (m-cap) of Rs 23,534.17 crore. There were 5,17,661 sell orders against buy orders of 59,730 shares.
Technically, the counter looked 'bullish' on charts and support could be seen in the Rs 520-496 range.
"Jupiter Wagons has witnessed a strong spurt in price and volume. This action has led to a 'Sloping Trendline' breakout, construing a bullish setup. Rs 520-500 is anticipated to cushion any shortcoming. While with the counter-trend, the stock seems poised to test the Rs 600 subzone in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Support will be at Rs 520 and resistance at Rs 562. A decisive move above Rs 562 may trigger a further upside towards Rs 600. The expected trading range will be between Rs 520 and Rs 600 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
"The stock price is bullish on daily charts with strong support at Rs 496.7. A daily close above resistance of Rs 568 could lead to an upside target of Rs 615 in the near term," said Sebi-registered research analyst AR Ramachandran.
As of September 2024, promoters held a 68.11 per cent stake in the private rail firm.
Meanwhile, shares of Indian Railway Finance Corporation (IRFC) Ltd, Titagarh Rail Systems Ltd (formerly known as Titagarh Wagons Ltd) and Texmaco Rail & Engineering Ltd also saw a decent uptick today.