Shares of Indian Renewable Energy Development Agency Ltd (IREDA) extended their fall for the second straight session in Thursday's trade. The stock slipped 5 per cent to hit a lower circuit limit of Rs 189. At this price, it has declined 9.72 in two straight sessions. Despite the mentioned fall, the multibagger scrip has rallied 490.63 per cent from its initial public offering (IPO) price of Rs 32. IREDA made a stellar stock market debut on November 29 last year.
On technical setup, analysts largely observed that the stock looked bearish. Major support on the counter will be around Rs 170 and a fall below the said level is likely to induce more pain. That said, one may consider entering for a second round of upward move if IREDA holds Rs 180 level decisively.
DRS Finvest founder Ravi Singh said, "IREDA stock is looking weak and it may slip towards Rs 170 level. Resistance will be at Rs 200."
AR Ramachandran from Tips2trades said, "The stock price looks bearish and extremely overbought on daily charts with strong resistance above Rs 200."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said support will be at Rs 180 and resistance at Rs 200.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a tremendous rally within a short span of time. Near-term support would be at around Rs 180 zone where it is expected to consolidate, and one can enter for second round of momentum. Our view gets negated, only if a decisive breach below Rs 168 zone is confirmed with the trend getting weak."
The renewable energy state-run financier reported a 67.2 per cent rise in its quarterly net profit at Rs 335.54 crore. Revenue from operations for the quarter rose 44.21 per cent to Rs 1,253.20 crore compared with Rs 868.98 crore in the same quarter last year.
Its loan book stood at Rs 50,579.67 crore against Rs 37,887.69 crore year-on-year (YoY), up 33.50 per cent.
IREDA is a mini Ratna firm under the administrative controls of the Ministry of New and Renewable Energy.
The organisation offers a comprehensive array of financial products (fund- and non-fund-based) associated services, from project inception to post-completion, for renewable energy projects and related activities like equipment manufacturing and transmission.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
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