These days one can find everyone talking about the Budget and their expectations from the same. However no one really talks about railway budget, due for release on February 24. Well, obviously the railway budget is not as important but if one is to look at it from the perspective of short term gains, then the area is clearly defined. All one has to do is lap up some stock related to railways, and as has been the trend for the last few years, one can make decent gains in a month's time.
Some of the prominent railway stocks are Titagarh Wagons Ltd., Kalindi Rail Nirman Ltd. etc and as I was observing their weekly high and lows, the traders have already started lapping up such stocks. For Titagarh Wagons Ltd. the weekly H/L stands at 485/400.2, while the monthly H/L stands at 485/350.85. Similarly for Kalindi Rail Nirman the weekly H/L stands at 224.8/198.00 while the mothly H/L stands at 224.8/178.15. The current market price of such stocks are presently close to their highs.
It is not that fundamental changes occur overnight even if there are some positive announcements, but then it's been a trend for the last many years and one can always play the trend.
As per the recent news item in the leading Financial daily Economic times
DAY traders have apparently taken control of the Titagarh Wagons counter ahead of the Railway Budget on February 24. The trigger for the frenzied action in the stock, according to brokers, could be expectations about some measures that would have a positive impact on the companys prospects. Titagarh Wagons, one of the leading railway wagon manufacturers in the country, stands to benefit if the government announces introduction of new trains or any such proposal that would push up demand for the companys products. The stock climbed 17% in just two trading sessions, before ending at Rs 466.6 on Monday. The spurt in the share price took place amid a significant improvement in volumes as, on a daily average basis, 25 lakh shares changed hands on Monday and last Thursday, compared to about one lakh shares in the previous two sessions. The interest in the counter, however, was mostly speculative as reflected in low delivery-based volumes. The delivery ratio the percentage of shares actually delivered in the market stood 10.7% on Monday and 6.3% on Thursday.
Although the stocks are already up, but considering the fact that there are still more than 7 trading sessions left to Railway budget, one can expect a further ramp up in the prices of stocks.
Note: One should do his due diligence and take into account his risk appetite before acting on the same.
To contact the Lead Associate on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com
Some of the prominent railway stocks are Titagarh Wagons Ltd., Kalindi Rail Nirman Ltd. etc and as I was observing their weekly high and lows, the traders have already started lapping up such stocks. For Titagarh Wagons Ltd. the weekly H/L stands at 485/400.2, while the monthly H/L stands at 485/350.85. Similarly for Kalindi Rail Nirman the weekly H/L stands at 224.8/198.00 while the mothly H/L stands at 224.8/178.15. The current market price of such stocks are presently close to their highs.
It is not that fundamental changes occur overnight even if there are some positive announcements, but then it's been a trend for the last many years and one can always play the trend.
As per the recent news item in the leading Financial daily Economic times
DAY traders have apparently taken control of the Titagarh Wagons counter ahead of the Railway Budget on February 24. The trigger for the frenzied action in the stock, according to brokers, could be expectations about some measures that would have a positive impact on the companys prospects. Titagarh Wagons, one of the leading railway wagon manufacturers in the country, stands to benefit if the government announces introduction of new trains or any such proposal that would push up demand for the companys products. The stock climbed 17% in just two trading sessions, before ending at Rs 466.6 on Monday. The spurt in the share price took place amid a significant improvement in volumes as, on a daily average basis, 25 lakh shares changed hands on Monday and last Thursday, compared to about one lakh shares in the previous two sessions. The interest in the counter, however, was mostly speculative as reflected in low delivery-based volumes. The delivery ratio the percentage of shares actually delivered in the market stood 10.7% on Monday and 6.3% on Thursday.
Although the stocks are already up, but considering the fact that there are still more than 7 trading sessions left to Railway budget, one can expect a further ramp up in the prices of stocks.
Note: One should do his due diligence and take into account his risk appetite before acting on the same.
To contact the Lead Associate on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com
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