Railway Stocks in Focus Ahead of Interim Budget: RVNL and Texmaco Rail Could Surprise
Railway stocks have experienced significant gains, with many of them surging more than four times since the last Budget. As the Interim Budget approaches on February 1, market experts are closely watching these stocks. Anand James, Chief Market Strategist at Geojit Financial Services, believes that RVNL and Texmaco Rail could be particularly surprising.
Nifty Ends Lower, Budget and Earnings in Focus
Last week, Nifty ended over 1% lower, with HDFC Bank leading the downside. The upcoming week is expected to be dominated by the Budget and earnings announcements. Traders and investors are carefully positioning their portfolios ahead of these major events.
Technical Analysis: Nifty Bank and HDFC Bank
The fate of Nifty Bank seems to be directly tied to HDFC Bank. While Nifty Bank staged a recovery on Thursday, it has not generated much excitement. With a limited upside objective, traders are cautiously monitoring the situation. A push above 45,420 could lead to a broader upside, but until then, downside markers may be placed near 44,700.
Trading Rail Stocks in the Run-Up to the Budget Session
Railway stocks have seen significant gains since the last Budget, with many of them moving more than four times. However, given the magnitude of the pre-budget rally in railway stocks this time, entering them afresh could be risky. There is a real danger of reversal, although recent patterns have not shown a bleak picture yet. RVNL and Texmaco Rail, in particular, could provide surprises in the upcoming Budget session.
Analysis of Zee Shares Amid Sony Merger Drama
Shares of Zee have experienced a sharp decline of 44% in January amid the drama surrounding its merger with Sony. Investors are cautious about catching a falling knife, but there are indications that the stock may have bottomed out. Two days of calm after the breakdown suggest that bears may not have any more fuel to push the stock lower. Aggressive traders may consider a 50% retracement move higher to 185, but downside markers should still be in place at 156 or 145.
Top Ideas for Budget Day: FACT and BORORENEW
For Budget day, two stocks to consider are FACT and BORORENEW. For FACT, the stock has been trading within a narrow range since December 2023. A break of the narrow resistance has occurred, and the MACD has also broken above the signal line, indicating more upside potential. Targets for FACT are set at 925 and 960. BORORENEW, on the other hand, has broken above the declining trendline resistance and is showing positive prospects. Targets for BORORENEW are 680 and 740. Traders are advised to protect all long positions with stop losses placed below 845 for FACT and below 577 for BORORENEW. It is also recommended to enter BORORENEW on pullbacks, as weekly momentum indicators are slightly stretched.
In summary, railway stocks are in focus ahead of the Interim Budget, with RVNL and Texmaco Rail expected to provide surprises. Nifty ended lower last week, and traders are positioning their portfolios ahead of the Budget and earnings announcements. The fate of Nifty Bank is tied to HDFC Bank, and caution is advised for both. Zee shares have fallen sharply, but indications suggest a possible bottoming out. FACT and BORORENEW are top ideas for Budget day, with specific targets and stop loss levels provided.