IRCON International shares zoom 20% to hit one-year high; time to buy, sell or hold?

Shares of IRCON International Ltd rose sharply in Monday's trade to scale their fresh one-year high. The stock soared 19.97 per cent to hit a 52-week high of Rs 160.10 over its previous close of Rs 133.45. The multibagger counter has zoomed 208.83 per cent in six months and 286.71 per cent in the past one year. The scrip has turned ex-dividend last week on September 5. The company declared a final dividend of Rs 1.20.

Market expert Ravi Singh said railways-linked stocks gained after the announcement of a connectivity deal, aiming to link India with Middle Eastern countries. Prime Minister Narendra Modi on Saturday unveiled a shipping and rail transportation corridor on the sidelines of G20 Summit in New Delhi.

"IRCON share price is trading with high volumes and it may continue the uptrend in near term. The technical parameters are in support of the trend. The stock may face resistance near Rs 180 level. Beyong this, Rs 220 level is quite probable," Singh stated.

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "IRCON has seen a vertical rally in the past couple of trading weeks on the back of robust volumes and has surged nearly 3x in the current financial year. The stock has witnessed multiple breakouts defying gravity. After such a strong rally, there is some probability of profit booking in the counter. However, from a broader term perspective, the stock looks strong and has the potential to continue its uptrend. As far as levels are concerned, the immediate support lies around Rs 141-135, followed by the breakout zone around Rs 120. And till it sustains above the same, the undertone is likely to remain bullish and dips should be utilised to add long positions."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has indicated a decent spurt in the last two sessions with strong volume built-up and strength indicated with next target expected till Rs 166 level. Further breach would open the gates for next target of Rs 186 level with much potential visible in the stock. The near-term support from current levels would be Rs 142-144 zone and only a decisive fall below Rs 135 would weaken the overall trend. Till then, one can stay invested and anticipate for further gains in the coming days."

Ganesh Dongre, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "On the daily charts, the stock is still in the bullish territory. Traders can 'buy on dip' or hold this stock with the stop loss of Rs 130 for targets of Rs 165-170 range in the upcoming week."

AR Ramachandran from Tips2trades said, "IRCON has been very bullish but also overbought on the daily charts with next resistance at Rs 159. Investors should be booking profits at current levels as a daily close below support of Rs 133.65 could lead to a sharp fall till Rs 111.5 in the near term."

Kush Ghodasara, independent market expert, CMT, said, "The stock has been on rising trend since July and today we saw a momentum breakout with volumes. New position is not advisable as risk is to reward is not favourable. Keep a trailing stop loss at Rs 121."

IRCON International is an engineering and construction company with specialisation in transport infrastructure. The PSU was established in 1976.

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