For the sixth session in a row, Indian Railway Finance Corporation Ltd. (IRFC Ltd.) stock prices rose on Monday. The stock soared 20% Thursday, reaching a new 52-week high of Rs. 66.78. On the BSE, it ultimately closed 19.78% higher at Rs. 66.66. The multibagger stock has increased 201.63 percent in a year and 102.61% year-to-date (YTD).
According to market expert Ravi Singh, "Railway stocks are in an uptrend after the Ministry of Railways requested Cabinet approval for a Rs 5.25 lakh crore investment program during 2024–2031)."
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According to the technical setup, IRFC is displaying strength on the daily and weekly charts, and the momentum indicators point to an impending strong move with a target price of Rs 80.
"On the daily charts, the IRFC stock price is overbought, with the next resistance at Rs. 70.65. Investors should take profits now because a closing below the support level of Rs. 61.5 could result in a target price of Rs. 48.85 in the near future, according to Tips2trades' AR Ramachandran.
"The counter continues to show strength. It is poised to quickly reach three digits after a breach over Rs 50. Every decline presents a buying opportunity with a target price of Rs. 101, advised Vaibhav Kaushik, a research analyst at GCL Broking.
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"The stock has shown a remarkable surge in the last two sessions, gaining about 35%, and the next objective is apparent near the level of Rs 72. Only a clear break below Rs 58 will damage the trend, according to Vaishali Parekh, Vice-President of Technical Research at Prabhudas Lilladher. "The stock has a near-term support at approximately Rs 60 level.
"The counter has continued to rise after a volume-based breakout around the Rs 51-odd level. In terms of levels, the Rs. 51 zone is anticipated to operate as solid support, and any hiccups before that could be absorbed by the Rs. 58-56 zone. On the other hand, the counter is expected to trade with a bullish bias up until it can persist above the support zones. According to Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, "it could continue its march into uncharted territory, but at the same time, one needs to avoid being complacent and have a pragmatic approach in the counter."
"Indicators are in the overbought zone, but they have internally demonstrated bullish crossover, which suggests some additional momentum. According to Kush Ghodasara, an independent market expert with CMT, new entries should be avoided since the risk-reward equation is unfavorable. However, current positions should be retained with a trailing stop loss at Rs. 58.
The counter's price was last observed trading above the 5-, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day SMAs. The 14-day relative strength index (RSI) for the counter was 89.41. Oversold is defined as a value below 30, and overbought as a value beyond 70. The price-to-equity (P/E) ratio of the company's stock is 11.67, while the price-to-book (P/B) ratio is 1.60.
Despite the fact that the analyst target price for the stock is Rs 44, Trendlyne data indicated a possible loss of 35%. With a one-year beta of 0.97, the stock has moderate volatility.
To finance the purchase or creation of assets that are later leased to the Indian Railways or any other business under the Ministry of Railways, IRFC borrows money from the financial markets.
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