Railway stocks were badly hit on Wednesday post Interim Rail Budget for 2014-15. Railway minister Mallikarjun Kharge has announced new trains across categories - 17 new premium trains, 38 express trains and 10 passenger trains.
No increase in rail fare and freight has been proposed in the Interim Rail Budget for 2014-15. The Minister announced that there will be no more unmanned crossings. A Rail Tariff Authority has also been announced. A number of measures for safety and security of passengers like portable fire-extinguishers in coaches and induction-based cooking in pantry car have been proposed in the Budget.
Shares of Hind Rectifiers dropped the most with 10.09%, followed by Kalindee Rail (1.81%)and Titagarh Wagons (1.33%).
Commenting on Hind Rectifiers, Anshul Jain, senior technical strategist, Lakshmishree Investment & Securities said, “The stock has been taking support around 34 levels since 2 years and in today's session the stock has breached the same said major support. On the downside the major supports are now placed at 24 levels and a breach of the same will head towards 15 levels. The stock is making lower tops and lower bottoms on the daily charts and in the today’s breakdown has initiated lower tops and lower bottoms on the weekly charts as well. Investors should exit on any and every rally towards 35-40 levels.”
Whereas on Kalindee Rail, he said, “The stock is a rail budget fancy stock and is in momentum ahead of rail budget only. The stock of late has been moving in a range of 89-60 for past whole year with minor blips on either side. There is no clear trend on the charts and a sideways activity is dominating the stock. The daily momentum indicators are flat whereas the weekly indicators are about to give a positive crossover. The momentum on the weekly charts is not that encouraging as the volumes are lacking big time and the stock is more of a new fancy. A breach of range 60-89 will provide further momentum to the stock.”
While on Titagarh Wagon, Jain said, “This is another rail budget fancy stock and gained momentum ahead of rail budget and remains sideways for the rest of the year. The stock is making lower tops and lower bottoms pattern on the weekly charts & for the past 2 quarters is consolidating in a narrow range of 115-95 and the same range is expected to continue for the next quarter. The indicators on daily as well as weekly charts are flat providing no clues as to which side the sideways action will breakout. A breach above 115 will head the stock towards 135 levels where as a close below 95 will head towards 75 levels.”