IREDA shares erase four-day losses, rise 7% today; what's next?

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) rose after four sessions of fall in early deals today. The stock which fell 7% in four days recovered all its losses today. The green energy stock climbed 6.96% to Rs 238.80 on Tuesday against the previous close of Rs 223.25 on BSE. IREDA’s market cap rose to Rs 63,995 crore. IREDA shares saw a turnover of Rs 56.39 crore in the current session as 23.94 lakh shares changed hands on BSE. 

The stock hit a record low of Rs 49.99 on November 29, 2023 and rose to a record high of Rs 310 on July 15, 2024. 

In terms of technicals, the relative strength index (RSI) of the stock stands at 35.6, signaling it's trading neither in the overbought nor in the oversold zone.

"The stock has seen a sharp correction from its all-time high levels. Investors can now start accumulating it on dips," market expert Raghvendra Singh told Business Today TV.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One sees support for IREDA stock at Rs 215-Rs 200. Strong resistance lies in the Rs 250-255 zone. 

A R Ramachandran, Independent SEBI Research Analyst said,"IREDA stock price is bullish on the Daily charts with strong support at Rs 223. A Daily close above the resistance of Rs 241 could lead to a target of Rs 266 in the near term."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher sees support for the stock at Rs 216. Resistance lies at Rs 242 level, he said.

Shares of IREDA made their market debut at a premium of 56.25% to the issue price at Rs 50 on November 29 on BSE and NSE. The price band of IREDA's IPO was Rs 30-32 apiece with a lot size of 460 shares. The IPO was open for bidding from November 21 to November 23.

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.