IREDA stock up 10%, taking one-month return to 100%! Should you stay put?

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) continued their upward run for the seventh straight session in Thursday's trade. The stock soared 10 per cent to hit an all-time high of Rs 123.37. At this price, the multibagger scrip has rallied 105.65 per cent in the past one month. It was last seen trading 5.86 per cent higher today at Rs 118.85.

In response to a BSE query on share price movement, the recently-listed company said it has launched its retail division, targeting PM-KUSUM scheme, rooftop solar, and other business-to-consumer (B2C) sectors. "The company has no such information which is required to be disclosed. The volatility in the price and volume in IREDA's shares is completely market driven," it further stated.

The stock made a stellar stock market debut on November 29, listing with a premium of over 56 per cent against the initial public offering (IPO) of Rs 32. The IPO was the first public issue by a public sector enterprise after Life Insurance Corporation of India (LIC) in May last year.

Also read: IREDA shares rose for sixth straight session, hit record high today; what's next?

A technical analyst said traders can stay put in the stock till it holds Rs 107 level. Immediate support on the counter could be seen at Rs 110. On the higher side, resistance may be found above the Rs 125 zone.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 110 and resistance at Rs 125. Expected trading range will be between Rs 105 and Rs 130 for next couple of months."

AR Ramachandran from Tips2trades said, "The stock looks bullish on daily charts, with the next resistance seen at Rs 131. Traders can stay put till the stock falls below the support of Rs 107 on a closing basis."

DRS Finvest founder Ravi Singh said the scrip may hit Rs 128 in the near term. Keep stop loss placed at Rs 110, Singh mentioned.

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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