IRCTC shares clocked flat returns in a year; here are the short-term targets

Shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) have delivered flat returns in the last one year. The railway stock has fallen 1.85% or Rs 13.45 during the period. However, on a year-to-date basis, IRCTC shares have gained 11.40%. The stock has generated 127% returns in three years. In Tuesday’s session, the IRCTC stock ended 0.78% lower at Rs 714.95 against the previous close of Rs 720.55 on BSE. The railway stock opened higher at Rs 723.05. IRCTC shares slipped to an intraday low of Rs 708.90. Total 1.37 lakh shares of the firm changed hands amounting to a turnover of Rs 9.84 crore on BSE. Market cap of IRCTC fell to Rs 57,196 crore.

The IRCTC stock hit a 52-week high of Rs 758.10 on September 8, 2023 and a 52 week low of Rs 557.15 on March 29, 2023. IRCTC stock has a one-year beta of 0.2. This signals the stock has low volatility.

In terms of technicals, the relative strength index (RSI) of IRCTC stands at 64.6, signaling it's trading neither in the oversold nor in the overbought territory. The large cap stock stands higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

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Here’s a look at what analysts said on the outlook of the stock.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has witnessed a decent pullback from the low made near 635 zone of the important 200 period MA and moving past the 50EMA level of 678 has improved the bias and recently with a short dip taking support near 692 zone has one again indicated a pullback and with further breach above 715 zone shall trigger for a breakout. The near term support would be near 685 levels and upside one can anticipate for 745-755 levels once a decisive breach above 715 level is confirmed."

Abhijeet from Tips2trades said,"IRCTC has strong resistance at Rs 723 on the Daily charts. A daily close below the support of Rs 691 could lead to lower targets of Rs 660 in the near term."

Mandar Bhojane, Equity Research Analyst, Choice Broking said, "The stock has formed an inverted head and shoulder pattern, indicating a bullish trend. A potential upward movement is anticipated, especially if the price closes above the Rs 720 level, with potential targets at Rs 760 and Rs 815 in the short run. To effectively manage risk, it is advisable to consider buying on dips, particularly near Rs 680. Additionally, implementing a stop loss at Rs 660 is crucial to safeguard your investment in the event of an unexpected market reversal. IRCTC appears to present an attractive buying opportunity for those aiming for a Rs 815 price target. However, it is crucial to have prudent risk management measures in place, including buying on dips and implementing a stop-loss at Rs 660."