RVNL, IRFC, Titagarh Rail: Kotak Securities' Shrikant Chauhan top 3 railway picks before budget

Commenting on the performance of railway stocks, Shrikant Chauhan of Kotak Securities said that there is good buying activity in railway stocks ahead of the Budget. He pointed out that railway stocks have seen a sharp correction from their highs, which has now improved their risk-to-reward ratio. In the past 1–1.5 months, many railway stocks have formed a double bottom pattern, indicating a possible recovery in the short to medium term.

Shrikant said that RVNL is a looking strong in the railway space. Technically, RVNL is showing a double bottom formation and looks attractive at current levels. The stock may move towards Rs 370–380, while Rs 310 is a strong support.

"One can consider buying RVNL shares at current levels with a stop loss of Rs 310," he said.

On IRFC, Shrikant said the railway stock has corrected nearly 50 per cent from its all-time high and has been consolidating for a long time.

"IRFC is also shows a double-bottom pattern on the chat and my view is that the railway counter could rise to Rs 140 in the near-term. A stop loss should be kept at Rs 105 to manage the risk effectively," he said.

On Titagarh Rail Systems, the analyst said that a strong buying interest is seen in the counter whenever is comes in the range of Rs 750 to Rs 770. At current levels of Rs 810–812, the stock can be bought for a target of Rs 950.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)