Texmaco Rail shares slip 14% from one-year high level; analysts suggest 'bearish' trend

Shares of Texmaco Rail & Engineering Ltd on Wednesday extended their fall for the third straight session. The stock plunged 6.45 per cent to close at Rs 141.30. At this price, the scrip has declined 13.76 per cent from its one-year high of Rs 163.85, a level seen on September 11, 2023. Although, the multibagger counter has gained 248.98 per cent from its 52-week low price of Rs 40.49, hit on March 29 this year.

Bourses BSE and NSE have put the securities of Texmaco Rail under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

On the technical front, analysts largely suggested that the stock looked 'bearish'. Support on the counter could be seen at Rs 135, followed by Rs 130 level. On the higher side, resistance may be found around the Rs 150 zone.

AR Ramachandran from Tips2trades said, "Texmaco Rail looks bearish on daily charts with strong resistance at Rs 151. A daily close below support of Rs 135 could lead to target of Rs 113 in the near term."

DRS Finvest founder Ravi Singh said, "The stock is looking weak and may dip towards Rs 120 in the near term. A decisive close above Rs 146 level is required for a further upside."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Short-term trading range for the stock would be Rs 125-155. Support could be seen at Rs 130 and resistance may be found around Rs 150."

The counter traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-, 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 54.11. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 74.62 against a price-to-book (P/B) value of 3.53.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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