Shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) have fallen 11% from record high. The stock, which hit a 52-week high of Rs 916.35 on December 19 fell to an intraday low of Rs 815.20 in trade today, losing 11% in nearly two sessions. In the current session, IRCTC shares fell 7.5% to Rs 815.20 against the previous close of Rs 881.30 on BSE. The railway stock opened higher at Rs 886. Total 7.28 lakh shares of the firm changed hands amounting to a turnover of Rs 61.21 crore on BSE. Market cap of IRCTC declined to Rs 66,260 crore.
The IRCTC stock fell to a 52-week low of Rs 557.15 on March 29, 2023. The stock has risen 30% this year and gained 24% in a year.
Kkunal V Parar, VP of Technical and Algo Research, Choice Broking said, "As per the price structure, the stock had given a breakout of trading range of 220 points, which is from Rs 560 to Rs 780 levels. The stock had surpassed and traded above all its key Moving Average on the Daily-Weekly-Monthly Time Frame which shows the strong upside potential of the stock. The stock will face a small hurdle near its Round Number Resistance of 900 level and the key support level is placed at Rs 810-800 levels. As per indicators, weekly and monthly, RSI is trading above 70 levels and it is also trading above its 20 Moving Average in all higher time frames which conforms bullish trend in the script. Our view is to buy on dips till Rs 800 levels for further upside of Rs 1,000/1,010 potential target and view will be neglected only below Rs 745 levels."
Abhijeet from Tip2trades said, "IRCTC is bullish but also overbought on the Daily charts with next resistances at Rs 895 & Rs 940. Investors should book profits at current levels as Daily close below support of Rs 839 could lead to target of Rs 760 in the near term."
Also read: IRCTC shares rise 14%, hit 52-week high amid record turnover
In terms of technicals, the relative strength index (RSI) of IRCTC stands at 84.2, signaling it's trading in the overbought territory. IRCTC stock has a one-year beta of 0.2. This signals the stock has low volatility. The large cap stock is trading higher than the 5 day, 10 day, 100 day, 150 day and 200 day moving averages.
IRCTC reported a 30.4% rise in net profit at Rs 294.7 crore compared to Rs 226 crore in the corresponding period last year. Revenue from operations climbed 23.5 per cent to Rs 995.3 crore compared to Rs 805.8 crore in the year-ago period.
On the operating front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) in the September quarter came in at Rs 366.5 crore, clocking a growth of 20.2 per cent, compared to Rs 304.9 crore in the same period last year.
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