A new index for railway stocks has been created by averaging eight selected stocks (Tex Meco, IRFC, IRCTC, Jupiter Wagon, TTEG, IRCON, RVNL, Railtel). This index has shown a breakout with strong volumes, indicating potential upside.
"we are going to create an index for railways. Ok? So how do we do that ? so first and foremost let's say we will keep on adding few stocks right now let's say we are adding tex meco ok tex rail i have selected this and i say plus ok then i say irfc ok and i say plus then i say irctc ok and plus then let's say jupiter wagon limited ok plus then tigger also we can take tigger wagon and tatgar rail ok plus i am sure there will be many more am i missing out on something 1 2 3 4 five i have taken one and two more if you can quickly suggest ircon we can take ircon and one one and two more r rfc i have already taken rbnl rbnl we can take rvnl just text my code did i tell no text i have already considered so tex meco irfc irctc jupiter tatgar ircon rvnl one more Railtel I have not taken Railtel so enough is enough ok ok done so I have considered at stocks of railways and now ultimately what I say is divided by at ok why I want an average c of course I understand that in an index there can be two concepts it could be a weighted average index. They have I not assigned any weights for this right? This is a simple average and simple weighted index. Ok? Sorry simple average of index. There are no waits. There are no vets involved here. So I have added all the prices and I have divided it by eight to get an average. And when I say enter who that's what you get. Is This This Is the Chart of What? Is it a chart of irrctcrfc Tager ircon nothing. This is a chart of all the eight railway stocks put together. This Is Our Index CRR Railway Index And This Is What You Can See On Screen Right Now. So now well by the way very clearly visible this one of the previous swing lows which has been taken out. So if I I want to just do an alt J you can very clearly see that there is a breakout here. Now let's just try and zoom out a bit and see if this level has been a key level in the past also or not. I'm just ok. Ok. So you can also see here that in the past also we have seen some sort of consolidation here it went up again a retest went up again you can also see some sort of consolidation here it went up again you can also see two or three times it has tested this and ultimately it broke down and now this is more or less like a double bottom pattern so if I just place the starting point here one two three four and five and a breakout now what is also we have to also check the volumes. Look at the beautiful volumes here. So it's not only about price. It is also about the action which is happening. It is also about the volume that you have to check. So amazing breakout given ah so that is the reason why I thought that now I should check individual railway stocks."