Texmaco Rail shares jump 7% to hover near 52-week high; can this upward momentum sustain?

Shares of Texmaco Rail & Engineering Ltd continued to trade higher for the third straight session in Tuesday's trade. The stock surged 6.67 per cent to hit a day high price of Rs 155.95. The multibagger counter has gained more than 175 per cent in the last six months. On BSE, around 9.71 lakh shares changed hands today at the time of writing this story. The figure was way more than the two-week average volume of 1.75 lakh shares. Turnover on the counter stood at Rs 14.79 crore, commanding a market capitalisation (m-cap) of Rs 4,862.46 crore. There were 2.57 lakh sell orders today against buy orders of 73,138 shares.

On technical setup, support on the counter could be seen at Rs 150, followed by Rs 145 and Rs 135 levels. Resistance is likely to be found in the Rs 160-170 zone.

"The stock is primarily in an uptrend, hovering well above all its significant EMAs (Exponential Moving Averages) on daily timeframe. Recently, the counter has seen a strong resurgence from the lows of Rs 110-odd zone and looks well-versed to re-test its 52-week highs in the near period. As far as levels are concerned, immediate support is placed around Rs 136-134. While on the higher end, the next potential resistance is seen at Rs 160," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Since the last 6-7 months, bulls have been on rampage. The said counter has been making higher highs and higher lows. One can trail stop-loss of Rs 150, which is also support and ride the bullish move if already bought. Fresh longs are not advised as the current price action is way above 200-DEMA along with an immediate resistance of Rs 165," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Texmaco Rail is bullish on daily charts with next resistance or target at Rs 171. Daily trend turns bearish only if strong support of Rs 145 is broken on a closing basis," said AR Ramachandran from Tips2trades.

The counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 71.02. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 72.22 against a price-to-book (P/B) value of 3.42.

The scrip has a one-year beta of 0.2, indicating low volatility.

Bourses BSE and NSE have put the securities of Texmaco Rail 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.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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