Stocks to Watch Ahead of Budget 2025 : Last year, during the Interim Budget 2024-25, railways and defense sectors were in the news. Rail Vikas Nigam (RVNL) and Indian Renewable Energy Development Agency (IREDA) performed well, while most railway stocks did not perform well. From February 2024 till now, Nifty 50 has given a good return of 8%, while RVNL and IREDA have shown a jump of 45% and 20%.
Now in the upcoming full budget, after the third consecutive term of the NDA government, we can see sector rotation and fresh policy incentives. The railway sector is likely to get adequate capital allocation, making it a potential area for investors to focus on.
Performance of PSU Railway Stocks
Of the 6 recently listed PSU railway stocks, only 2 have performed well, while the remaining four have been laggards since February 2024. Based on technical and fundamental analysis, there are 2 stocks that have the potential for a comeback.
IRCTC
From Budget 2024 to Budget 2025, IRCTC has given negative returns of 14%. After touching the highest level of Rs 1130 in 2024, the stock is trading near the long term support level of Rs 780. Many technical indicators are indicating recovery in the stock in the near future.
⦁ Falling Wedge Pattern: The stock has formed a falling wedge pattern, which is a bullish reversal pattern.
⦁ Volume Surge: Recent price and volume movement is indicating increasing investor interest, which is a positive sign.
⦁ RSI Divergence: The 14-period RSI is showing a three-bar divergence, indicating an upcoming trend reversal.
(Source: Investing.com)
what is outlook
The price correction in IRCTC from Rs 1,130 to Rs 743 shows that it is trading in a strong accumulation zone. Several short- and long-term support levels strengthen the possibility of an upside move from here.
IRCON
IRCON had a strong start to 2024, but in the second quarter of the year, the stock corrected from Rs 350. It gave a return of 72% from Budget 2024 to Budget 2025. However, its daily chart is indicating a new bullish trend, which is being supported by some indicators.
⦁ Bullish Harami Candlestick Pattern – A bullish reversal pattern has formed at the lower level of the stock.
⦁ Double Bottom Formation – The stock is on the verge of breakout from a bullish double-bottom pattern.
⦁ RSI Strength – Bullish divergence is visible in the 14-period RSI, which further strengthens the upside signal.
(Source: Investing.com)
outlook
Price correction in IRCON from Rs 351 to Rs 180 and the current chart setup shows that it has completed the correction process and is now in a strong accumulation zone. From here, the upside potential is strengthened by several short- and long-term support levels.
Railway stocks have a bright future
Increased budget allocation for the railway sector and increased travel demand during summer holidays can give a strong boost to railway stocks. Among PSU railway stocks, IRCTC and IRCON are prominent due to their strong chart patterns and technical indicators, which indicate that they may deliver strong returns in the near future.
Disclaimer
Note- The purpose of this article is simply to share interesting charts, data points, and thoughtful opinions. This is not a recommendation for investment. If you wish to consider investing, you are recommended to consult your advisor. This article is for educational purposes only.
As per SEBI guidelines, the author and his dependents may or may not own Stocks/Commodities/Crypto/any other assets discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
Kiran Jani Has over 15 years of experience as a trader and technical analyst in the financial markets of India. He is a popular face as a market expert on trading channels and has worked with Asit C Mehta, Kotak Commodities and Axis Securities. Presently, he heads the Technical and Derivatives Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/writers/authors. Investors must make their own investment decisions based on their specific objectives and resources, and only after consulting such independent advisors if necessary.
