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Indian Railway Finance Corporation Ltd (IRFC) shares surged in Thursday’s trade to scale their fresh one-year high level. The stock jumped 6.06 per cent to hit a 52-week high of Rs 109.30 over its previous close of Rs 103.06. The multibagger scrip has rallied over 238 per cent in the past one year.
The counter saw huge trading volumes today as 2.65 crore shares were last seen changing hands. The figure was higher than the two-week average volume of 85.93 lakh shares. Turnover stood at Rs 283.28 crore, commanding a market capitalisation (m-cap) of Rs 1,39,584.71 crore.
An analyst suggested that the counter’s upside would be limited. Support on the counter could be seen around Rs 100. On the higher side, IRFC may climb up to Rs 126 level in the near term.
“From hereon, potential upside is looking limited. Expected targets would be Rs 120-125 levels. Traders can also consider booking profits,” said AK Prabhakar, Head of Capital at IDBI Capital.
“IRFC has been in a secular uptrend, hovering above all its significant EMAs on daily timeframe, suggesting an inherent strength. Also, with the recent consolidation breakout, which has levitated the counter to clock new highs, it looks poised to continue its upward march into uncharted territory. On the level-specific front, strong support is placed around the Rs 96-95-odd zone before the Rs 100 mark should act as cushioning to any short-term blip. On the higher end, immediately Rs 112, followed by Rs 118-120, is the next potential target that one can expect in the counter from a short to medium-term perspective,” said Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One.
“The stock after a short span of consolidation has indicated a breakout above the Rs 104 zone to further improve the bias and anticipate for fresh upward move with next targets of Rs 114 and Rs 126 levels visible in the coming days. The chart is looking attractive. One can enter in the stock, keeping the stop loss at Rs 100,” said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.
“IRFC is bullish but also overbought on daily charts with next resistance at Rs 114. Investors should book profits at current levels as a daily close below support of Rs 101 could lead to target of Rs 80 in the near term,” said AR Ramachandran from Tips2trades.
“The stock may see Rs 120 level in the near term. Keep stop loss placed at Rs 103,” said DRS Finvest founder Ravi Singh.
IRFC borrows funds from the financial markets to finance the acquisition or creation of assets which are then leased out to the Indian Railways or any entity under the Ministry of Railways. As of September 2023, promoters held 86.36 per cent stake in the ‘Navratna’ PSU.
