IRFC Shares Surge 19% to Reach One-Year High, Analysts Predict Further Gains

Shares of Indian Railway Finance Corporation Ltd (IRFC) have witnessed a remarkable surge, reaching a new one-year high. The stock rallied 19% to reach a 52-week high of Rs 134.70. With a stunning growth of around 300% within a year, analysts anticipate the counter to continue gaining momentum in the near future.

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Technical analysis suggests that the stock has support levels around Rs 120-115, with a potential upward movement towards Rs 164. However, some analysts advise booking profits at current levels due to the overbought condition of the stock.

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The Senior Research Analyst, Osho Krishan from Angel One, stated, “IRFC has shown a strong spurt and is likely to continue its upward trajectory. The stock has support levels at Rs 120-115, while a breach below Rs 105-100 should be a cause for concern. As the stock is in uncharted territory, it is important to monitor and trail profits regularly.”

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Another Technical Research Analyst, Shiju Koothupalakkal from Prabhudas Lilladher, stated, “The stock has experienced a significant surge in the last three sessions, meeting our price targets of Rs 114 and Rs 126. With a maintained bullish bias, we expect further upward movement towards the targets of Rs 148-164. The stock’s immediate support lies at the Rs 125 zone, and a breach below Rs 114 would weaken the overall trend.”

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Ravi Singh, the Founder of DRS Finvest, predicts that the stock may reach Rs 150 in the near future, but advises placing a strict stop loss at Rs 120.

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AR Ramachandran from Tips2trades mentions that while IRFC is currently bullish, it is also overbought on daily charts. He suggests investors to book profits at the current levels, as a close below the support level of Rs 120 could lead to a target of Rs 99 in the short term.

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Analysts attribute the sharp gains of railway counters, including IRFC, to the anticipation of a record allocation for the sector in the upcoming budget. Vishal Periwal, the Sector Analyst (Infra) at IDBI Capital, explains that railway stocks are witnessing significant gains due to expectations of increased government spending.

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IRFC’s trading volumes on BSE reached 3.15 crore shares, well above the two-week average volume of 1.09 crore shares. The turnover on the counter amounted to Rs 403.59 crore, establishing a market capitalization (m-cap) of Rs 1,70,883.78 crore.

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Note: This news article is for informational purposes only and does not constitute investment advice. It is always recommended to consult with a qualified financial advisor before making any investment decisions.