IRFC shares rally 19% to hit fresh one-year high; analysts see more upside

Indian Railway Finance Corporation Ltd (IRFC) shares extended their sharp gains in Monday's trade and scaled new one-year high level. The stock rallied 18.80 per cent to hit a 52-week high of Rs 134.70. The multibagger scrip has zoomed around 300 per cent in a year. A few analysts largely suggested that the counter is likely to witness more gains in the near term.

On techncial setup, support level could be seen in the Rs 120-115 zone. On the higher side, IRFC's stock may climb up to Rs 164. That said, an analyst recommended booking profits at current levels.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "IRFC witnessed a strong spurt and continued its northward march into uncharted territory. The stock seems poised to carry momentum further. At current, a series of support can be seen in the Rs 120-115 zone, while sacrosanct support lies around 105-100 zone. Also, as the counter is in an uncharted zone, with no specific technical resistance, it is advisable to keep trailing profits regularly.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a decent spurt in the last three sessions and has met with our targets of Rs 114 and Rs 126, respectively. With the bias maintained strong, we expect further upward move for next targets of Rs 148-164. From current levels the support would be at the Rs 125 zone and only a decisive breach below Rs 114 level shall weaken the trend overall."

DRS Finvest founder Ravi Singh said, "The stock may see Rs 150 level in the near term. Keep a strict stop loss placed at Rs 120."

AR Ramachandran from Tips2trades said, "IRFC is bullish but also overbought on daily charts with next resistance at Rs 140. Investors should book profits at current levels as a daily close below support of Rs Rs 120 could lead to target of Rs 99 in the near term."

A majority of railway counters witnessed huge gains after it was reported that Budget allocation for the sector could hit a record high. Vishal Periwal, Sector Analyst (Infra) at IDBI Capital, said, "With Budget around the corner, railways stocks witnessed sharp gains today. It could be on anticipating a record allocation for the sector."

IRFC saw huge trading volumes today as 3.15 crore shares were seen changing hands on BSE. The figure was way more than the two-week average volume of 1.09 crore shares. Turnover on the counter came at Rs 403.59 crore, commanding a market capitalisation (m-cap) of Rs 1,70,883.78 crore.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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