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IRFC’s stock price had a significant increase today, rising by 20%. It reached a new high for the year at Rs 66.78. This particular stock has been quite impressive, with a remarkable gain of 102.98% year-to-date and an astonishing 202.17% over the past year.
Impressive Performance Continues
Indian Railway Finance Corporation Ltd (IRFC Ltd) shares have been on a winning streak, rising for six straight sessions. On Monday, the stock surged by 20%, reaching a new 52-week high of Rs 66.78. By the end of the trading day, it settled at Rs 66.66, a 19.78% increase on the BSE. This particular stock has been quite the performer, posting a remarkable gain of 102.61% year-to-date and an astounding 201.63% over the course of a year.
Expert Insights
“According to market expert Ravi Singh, railway company shares are on the rise because the Ministry of Railways has requested Cabinet approval for a massive investment plan of Rs 5.25 lakh crore from 2024 to 2031.”
Technical Analysis
In terms of technical setup, IRFC looks strong when we analyze its daily and weekly charts. The momentum indicators also indicate a robust potential for a significant upward movement, with a target price of Rs 80 expected in the short term.
Cautionary Note
“According to AR Ramachandran from Tips2trades, the IRFC stock price is in a situation where it’s trading at a higher value than usual on the daily charts. The next significant price point where it might face resistance is at Rs 70.65. For investors, it’s advisable to consider taking their profits at the current levels. This is because if the stock price falls below the support level of Rs 61.5, there is a potential downside target of Rs 48.85 in the near future.”
Positive Outlook
“The stock is consistently doing well. After surpassing Rs 50, it’s on track to reach a price in the hundreds before long. Make sure to set a stop loss at Rs 49, and consider buying whenever there’s a dip, aiming for a target price of 101,” advised Vaibhav Kaushik, a Research Analyst at GCL Broking.
Short-Term Analysis
“The price has gone up significantly from around Rs 51, and it’s still moving up. If we look at certain levels, Rs 51 should provide strong support, and before that, there’s some safety around the Rs 58-56 range in case there’s a small drop. On the other hand, as long as the price stays above these support levels, it’s expected to keep going up. It might go even higher, but it’s important not to get too comfortable and approach this cautiously,” explained Osho Krishan, who is a Senior Analyst specializing in Technical & Derivative Research at Angel One.
Trading Advice
The indicators are in the overbought zone, but they have recently shown a bullish crossover internally, indicating the potential for more upward momentum. It’s advisable to refrain from making a new entry as the risk-reward balance isn’t in our favor. However, if you already have a position, you can consider holding it while using a trailing stop loss at Rs 58. This advice comes from Kush Ghodasara, who is an independent market expert with a CMT designation.
Technical Metrics
The stock was recently trading higher than its short-term, mid-term, and long-term moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day averages. The stock’s 14-day relative strength index (RSI) is currently at 89.41. Typically, when the RSI falls below 30, it’s considered oversold, while a reading above 70 suggests that it’s overbought. In this case, the company’s stock has a price-to-earnings (P/E) ratio of 11.67 and a price-to-book (P/B) value of 1.60.
Analyst Projections
“The stock has an analyst target price of Rs 44, according to Trendlyne data. This suggests that the stock could potentially drop by 35 percent. It also has a one-year beta of 0.97, which means it has an average level of volatility.”
Understanding IRFC
IRFC takes loans from financial markets to buy or make things, like trains and railway infrastructure. Then, they rent these things to Indian Railways or other Railway Ministry-related groups.