IRFC share price: On technical setup, IRFC is showing strength on daily and weekly charts, an analyst said. 
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IRFC share price: On technical setup, IRFC is showing strength on daily and weekly charts, an analyst said. Shares of Indian Railway Finance Corporation Ltd (IRFC Ltd) on Tuesday extended their gains for the seventh straight session. The stock surged 13.59 per cent to hit a fresh 52-week high of Rs 75.72 against its previous close of Rs 66.66. At today's high price, the scrip has rallied 56.35 per cent in seven days. On a year-to-date (YTD) basis, the multibagger counter has ascended by 120 per cent. IRFC has declared a final dividend of 70 paise for the financial year 2022-23 (FY23) and the stock would trade ex-dividend on September 15, 2023.
Railway stocks are in the upward trend after the Ministry of Railways sought Cabinet approval for a Rs 5.25 lakh crore investment program during 2024-2031, said market expert Ravi Singh. On technical setup, IRFC is showing strength on daily and weekly charts and the momentum indicators are suggesting a strong move ahead for a target of Rs 80 in the near term, he added.
"As far as levels are concerned, the zone of Rs 51 is likely to act as strong support, before which the Rs 58-56 zone could cushion any blip. On the flip side, till the counter is able to sustain above the support zones, it is likely to trade with a positive bias," said Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One.
Krishan also said that the stock could continue its march in uncharted territory, but at the same time, one needs to avoid being complacent and have a pragmatic approach in the counter.
The counter is showing continuous strength and it is ready to become a three-digit stock very soon, said Vaibhav Kaushik, Research Analyst at GCL Broking. "Keep stop loss placed at Rs 49 and every dip is buying opportunity for a target price of 101," Kaushik mentioned.
Fresh entry can be avoided as risk-reward equation is not favorable but existing position can be held with trailing stop loss at Rs 58, said Kush Ghodasara, independent market expert, CMT.
Investors should be booking profits at current levels as a close below support of Rs 61.5 could lead to target of Rs 48.85 in the near term, said AR Ramachandran from Tips2trades.
The stock has a near-term support at around Rs 60 level and only a decisive breach below Rs 58 would weaken the trend, said Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher.
The counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 91.39. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 13.98 against a price-to-book (P/B) value of 1.92.
Although, the scrip has an analyst target price of Rs 44, Trendlyne data showed, suggesting a potential downside of 40 per cent. It has a one-year beta of 1.06, indicating high volatility on the counter.
IRFC borrows funds from the financial markets to finance the acquisition or creation of assets which are then leased out to the Indian Railways or any entity under the Ministry of Railways.
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