IRFC, a multi-bagger railway PSU stock, climbs 17% in one week; what could investors expect from IRFC shares on a technical breakout?

IRFC: On Saturday, IRFC’s stock price surged by over 2% amidst significant trading volumes, extending its winning streak for the third consecutive day. The previous session witnessed a remarkable 7% leap in IRFC’s stock price.

Indian Railway Finance Corporation’s shares, a high-performing railway stock, have surged by more than 17% in just one week and over 22% in the span of a month. Year-to-date, this PSU stock has soared by over 74%, while delivering extraordinary returns of more than 411% over the past year.

Currently trading around ₹173.20, IRFC shares are exhibiting a bullish trend on the technical front, surpassing key moving averages including the 20, 50, 100, and 200-day averages.

Deven Mehata, a Research Analyst at Choice Broking, points out that the current price movement indicates a strong upward trend, especially if the stock maintains levels above ₹178. He anticipates targets of around ₹190 and ₹205. Notably, the breakout of a symmetrical triangle pattern suggests a continuation of the upward trajectory. Additionally, with the Relative Strength Index (RSI) at 70.10, the stock’s underlying strength is evident, reinforcing the bullish sentiment.

Mehata advises investors to consider buying opportunities in IRFC shares during market dips, particularly around ₹161, as part of a strategic approach. He emphasizes that these opportunities, supported by various technical indicators, provide potential entry points for investors looking to capitalize on the stock’s upward momentum while prudently managing associated risks.

He also recommended implementing a stop-loss strategy below ₹158 levels to effectively manage risk. This precautionary measure aims to mitigate potential losses in case of a market downturn or unexpected price fluctuation.

The Choice Broking analyst emphasized the importance of adopting a cautious yet proactive approach. This includes setting appropriate stop-loss levels and capitalizing on market dips for strategic entry. With the aid of such tactics, investors can successfully traverse the present bullish trend in the IRFC trading market.

Also Read: Ujjivan SFB Q4 Results

IRFC’s Q4 results are slated to be disclosed on Monday, May 20th. During this session, the Board of Directors will review and endorse the audited financial results for the quarter and fiscal year ending March 31st, 2024. Additionally, they may propose a final dividend for the Financial Year 2023-24.

On Saturday, IRFC shares closed 2.61% higher at ₹173.20 each on the BSE.