Railway stocks hit record highs ahead of Budget; How to trade IRCON, IRCTC and RailTel on Monday?

Sectorally, buying was seen in oil & gas, FMCG and IT stocks while selling was visible in telecom, infrastructure, metal, power and realty stocks.

Railways-related stocks that hit fresh record highs include RailTel Corporation of India which closed with gains of over 14%, IRCON gained more than 5% and IRFC closed with gains of more than 4% to hit a fresh high on Friday.

We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:

Analyst: Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio Ltd

On the daily time frame, RailTel has given a breakout from a range and is now trading at an all-time high level which indicates continuation of the uptrend.

The security closed near its record high indicating buyers are keen to buy the stock. The volume increase supports the price action which is a bullish sign.

On the average front, the price is trading above its all major EMAs indicating that the uptrend is likely to continue.

IRCON has given a breakout from a range on the daily time frame on the upside indicating an uptrend.

The burst in volume during the current week suggests increased buying interest at the current price levels, which further reinforces the positive outlook for security.

Price is trading above Fast (50) EMA and Slow (200) EMA indicating uptrend

IRFC ltd is seen to be making higher highs and higher lows on the weekly timeframe and it has hit an all-time high after breaking out from a cup & handle pattern which confirms the continuation of the bullish trend.

The trend is expected to continue further in the coming days moreover volume during the days when the scrip closes higher are comparatively higher than the volume on sell (down) days signaling buyers dominance.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)