IREDA shares: After the Lok Sabha Election outcome, shares of the Indian Renewable Energy Development Agency (IREDA) have been trading within a narrow range. On June 4, the day the election results were announced, IREDA stock closed at Rs 167.35, marking a 13% decline from its previous close of Rs 191.9 on June 3. Since then, the stock has remained range-bound, fluctuating between levels of Rs 167 and Rs 179 up to the present date.
IREDA stock traded flat in the current session, briefly rising to Rs 178.95 from the previous close of Rs 178.05 on the BSE. The firm’s market capitalization was reported at Rs 47,250 crore. However, by the end of the session, IREDA shares closed 1.29% lower at Rs 175.75 on the BSE, with the market cap adjusting to Rs 47,237 crore.
Despite this, IREDA shares have declined by 18.13% from their peak of Rs 215 recorded on February 6, 2024.
Wednesday’s trading saw significant turnover, with Rs 42.52 crore exchanged as 24.14 lakh shares were traded on the BSE. IREDA’s market cap remained steady at Rs 47,250 crore.
Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox, commented, “Following the election outcome, the price action has been range-bound. There is potential for accumulation in the near term within the range of Rs 185 to Rs 160. A breakout above Rs 200 could propel the stock towards Rs 225 and Rs 250. Conversely, a close below Rs 160 may lead to declines to Rs 130 and Rs 115 levels. The Relative Strength Index (RSI) has cooled off, indicating subdued momentum. Weekly and monthly charts reflect sluggish movement, awaiting a clear breakout to attract trader interest.
According to Jigar S Patel from Anand Rathi, “Support is expected around Rs 165 with resistance at Rs 186. A decisive close above Rs 186 could potentially lead to further gains up to Rs 200. The anticipated short-term trading range is projected between Rs 175 and Rs 200.
From a technical standpoint, the relative strength index (RSI) of the stock is currently at 50, indicating it is neither in the overbought nor oversold territory.
IREDA stock debuted on November 29, 2023, at Rs 50, marking a premium of 56.25% over its IPO issue price of Rs 32. The IPO was open for subscription from November 21 to November 23, 2023, with a price band of Rs 30-32 per share and a lot size of 460 shares.
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Under the administrative direction of the Ministry of New and Renewable Energy (MNRE), IREDA is a government enterprise classed as a Mini Ratna (Category – I). With a track record spanning more than 36 years, IREDA has been actively engaged in promoting, developing, and providing financial support for projects related to new and renewable energy, along with initiatives aimed at energy efficiency and conservation.
