IREDA shares: Price action turns sideways post election outcome, should you buy on dips?

Shares of Indian Renewable Energy Development Agency (IREDA) have been trading in a range post the Lok Sabha Election outcome. IREDA stock closed at Rs 167.35 on June 4, the day when election results were announced. They fell 13% against the close of Rs 191.9 on June 3. Since then, the stock has turned range-bound moving between Rs 167 to Rs 179 level till date.

The IREDA stock was trading on a flat note in the current session. It rose to Rs 178.95 intraday against the previous close of Rs 178.05 on BSE.  Market cap of the firm stood at Rs 47,250 crore. Later, IREDA shares closed 1.29% lower at Rs 175.75 on BSE. Market cap of the firm stood at Rs 47,237 crore.

However, IREDA shares are down 18.13% from their record high of Rs 215 touched on February 6, 2024.  

IREDA shares saw a high turnover of Rs 42.52 crore on Wednesday as 24.14 lakh shares changed hands on BSE. IREDA’s market cap stood at Rs 47,250 crore.

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said, "The price action has turned sideways post-election outcome. The rangebound trade between Rs 185 – Rs 160 levels could see an accumulation in the near term. A breakout over Rs 200 would send the counter towards Rs 225 and Rs 250. However, a breach of Rs 160 on the closing bias could see a drop to Rs 130 and Rs 115 levels. The Relative Strength Index (RSI) has also cooled-off, signaling no major movement. The weekly and monthly charts reveal sluggish momentum, which awaits a clear breakout. Only then, the price action may witness interest from traders."

Jigar S Patel from Anand Rathi said, "Support will be at Rs 165 and resistance at Rs 186. A decisive close above the Rs 186 level may trigger a further upside to Rs 200. The expected trading range will be between Rs 175 and Rs 200 for a short-term."

In terms of technicals, the relative strength index (RSI) of the stock stands at 50, signaling it's trading neither in the overbought nor in the oversold zone.

Shares of IREDA stock made its market debut at Rs 50 on November 29, 2023. The listing was  carried out at a premium of 56.25% over the IPO issue price of Rs 32.

The IPO was open from November 21 to November 23, 2023. The price band of IREDA's IPO was Rs 30-32 apiece with a lot size of 460 shares.

IREDA is a Mini Ratna (Category - I) government enterprise. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE). IREDA has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects for over 36 years.