Stock market today: After becoming one of the Navratna companies in India, shares of Railtel Corporation of India witnessed strong buying interest during the early morning session on Monday. Railtel share price today opened with an upside gap at ₹512.60 apiece on the NSE and touched an intraday high of ₹514.50 per share within a few minutes of the Opening Bell, recording an intraday high of around 5 per cent against the Friday’s close price of ₹490.80 apiece.
Triggers for Railtel share price today
Speaking on the reason for the rise in Railtel share price, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “The current rally in this railway PSU stock can be attributed to the Navratna status being given to the company last week. However, the PSU railway stocks are available at a discounted price and it has remained almost non-participant in the recent bull market. So, this positive trigger has attracted buyers’ interest during the morning session.”
On why railway stock surged after becoming a Navratna company, Seema Srivastava, Senior Equity Research Analyst at SMC Global Securities, said, “Railways stocks are good for long-term investment on account of the government’s continued focus on infrastructure development, including railways, would support the growth prospects of these companies. Moreover, favourable policy initiatives to modernise and upgrade rail networks, stable revenue streams, and strong order books will likely get good financial support from these companies.”
Railtel share price target
Expecting more upside in Railtel share price, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said, “Railtel share price is looking positive on the chart pattern. The railway PSU stock is facing a hurdle at ₹525 apiece. Once it closes above this resistance, one can expect Railtel’s share price to touch ₹560 and ₹580 apiece. So, Railtel shareholders are advised to hold the scrip for the above-mentioned targets, maintaining a stop loss at ₹460.”
On the suggestion to fresh investors, Ganesh Dongre said, “Fresh investors can buy Railtel shares at current levels, maintaining a buy-on-dips strategy for the above-mentioned targets. However, they must maintain a strict stop loss of ₹460. Those who want to play sage are advised to buy in the ₹480 to ₹490 zone or above ₹525 for ₹560 to ₹580 upside targets.”
The article originally appeared on Mint.