IRFC stock is resuming its uptrend.
IRFC is a subsidiary under the Ministry of Railways. Its share price whooped percent on Tuesday,20 December 2022. The PSU stock traded under pressure in the past few days as profit booking dragged the stock more than 20 percent from its 52-week high of Rs 37.10 that it had touched on 30 November 2022.
The stock opened in green at Rs 32.95 apiece on NSE. It was up marginally from the previous close of Rs 32.85, even as the benchmark indices slipped in opening trade tracking weak global cues. The Indian Railways stock witnessed good momentum and good volumes in today’s session as strong buying lifted it to the day’s high of Rs 35.95, whooping 9 percent.
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The stock had slipped into a consolidation phase after the one-way rally last month that saw the counter gaining almost 50 percent from its IPO issue price of Rs 26.The last month’s rally brought much needed relief to IRFC investors who were waiting for a trend reversal since the listing in January 2021. The shares of the financing arm of Indian Railways had made a weak stock market debut at Rs 24.90 on NSE, a discount of 4.23 percent to its IPO issue price.
Analysts are bullish on IRFC shares and have been recommending for the long term. According to Nilesh Jain, technical analyst at Centrum Broking, the outlook continues to remain positive and one may expect an upside move towards Rs 37-39.
“The stock has given a good run-up in this calendar year. A good healthy correction was seen, the stock is resuming its uptrend now,” he said. If the stock takes out the Rs 37 level, a further move to Rs 40 levels could be expected, he added.
Nilesh said that such trends in Indian Railways stock come in anticipation of the announcement by the government before the budget,” he added.
