IREDA shares are up 254% from listing price; stop loss, resistance & support for target above Rs 200

Shares of Indian Renewable Energy Development Agency (IREDA) have gained 254% from their listing price. The multibagger stock, which listed at Rs 50 last year rose to a high of Rs 177 in early deals on Thursday. IREDA stock rose to its all-time high of Rs 215 on February 6, 2024.  It fell to a 52 week low of Rs 49.99 on November 29, 2023. The stock listed at a premium of 56.25% over the IPO issue price of Rs 32 in the same session.

The stock has been trading in a range post the Lok Sabha Election outcome. It has been moving between Rs 167 to Rs 179 level since June 4 .

In the current trading session, the IREDA stock was trading on a flat note. It rose 0.31% to Rs  176.30 against the previous close of Rs 175.75 on BSE.  Market cap of the firm stood at Rs 47,304 crore. The IREDA stock has fallen over 18% from their record high of Rs 215.

IREDA shares saw a low turnover of Rs 1.77 crore on Thursday as 1.01 lakh shares changed hands on BSE.

Aditya Agarwal, Head Derivatives & Technical at Sanctum Wealth said, "IREDA is trading in broad range of Rs 155- Rs 195 with no clear direction. RSI and MACD both have given negative divergence and are indicating toward continuation of sideways movement in the stock. We expect this consolidation to continue for some more time where dips towards Rs 165- Rs 158 can be used to add IREDA from medium-term perspective. On higher side, the stock will find strong resistance around Rs 195- Rs 200 band and above that can move toward Rs 215/228 levels whereas on lower side, a close below Rs 152 will weaken the structure of stock."

Mandar Bhojane, Equity Research Analyst at Choice Broking said, "IREDA is currently trading at Rs 176.2, having recently broken out of a trading range. This breakout above Rs 190 suggests potential for further upward movement, with projected price targets set at Rs 215. A significant support level is identified near Rs 163 on the downside. Furthermore, IREDA is currently trading above the key Exponential Moving Averages (EMAs), including the 50-day, 100-day, and 200-day EMAs. This indicates robust bullish momentum, signaling the likelihood of sustained upward price action. The Relative Strength Index (RSI) stands at 48.3, implying an upward trajectory and affirming an increase in buying momentum. To effectively manage risk, it is advisable to establish a stop-loss at Rs 160 to protect the investment against unexpected market reversals. A prudent approach involves considering buying opportunities during market dips at levels around Rs 168. IREDA presents a promising buying opportunity for those targeting a Rs 215 price objective, contingent upon implementing prudent risk management measures."

In terms of technicals, the relative strength index (RSI) of the stock stands at 48, signaling it's trading neither in the overbought nor in the oversold zone.

The IPO of IREDA 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.