Top breakout stock below Rs 50: Texmaco Rail and Engineering

Texmaco Rail & Engineering Ltd is an ISO: 9001-2008, a premier multi-discipline, multi-unit engineering and infrastructure company with five manufacturing units, extending over 170 acres in the outskirts of Kolkata.  

The company is engaged in the business of manufacturing rolling stock, hydro-mechanical equipment, steel castings, agricultural and other equipment. Taxmaco has been consistently the best performer in the rolling stock industry and also, stood out as the market leader. One out of every four freight cars running on Indian railroads has rolled out of Texmaco.   

On Friday, the stock has been trading with solid gains of over 3 per cent in otherwise a market where the bears are seen dominating. Volume for the day has already surpassed its prior trading sessions’ volume and in fact, it’s the highest since January 12. Moreover, the stock is trading just 4 per cent away from its 52-week high.   

On the weekly chart, the stock has witnessed a breakout of a 26-week long consolidation pattern last week along with robust volume and sizeable bullish candle. The size of the weekly bullish candle was more than double the 10-week average range while the volumes witnessed a four-fold jump when compared to its 10-week average volume.   

The leading indicator i.e. the 14-period daily RSI is in the super bullish zone and has given a bullish crossover. The daily, as well as the weekly MACD, stays bullish as it is trading above its zero line and signal line. The stock is clearly on an uptrend while the trend strength is extremely high. The average directional index (ADX), which shows the trend strength, is as high as 39.