IRFC Shares Hit New Highs Amid Bullish Momentum and Budget Anticipation

In the January 15th, 2024, trading session, shares of Indian Railway Finance Corporation Ltd (IRFC) continued their remarkable ascent, reaching a new one-year high and experiencing an impressive rally of 18.80%. The multibagger scrip has soared by approximately 300% in the past year, prompting analysts to foresee potential gains in the near term.

Technical Analysis:

Analyzing the technical setup, experts suggest that the stock has a support level in the Rs 120-115 zone. On the upside, the IRFC stock may potentially climb to Rs 164. However, caution is advised, with one analyst recommending profit booking at current levels.

Expert Views On IRFC Share Hike

  • Osho Krishan, Senior Research Analyst at Angel One, notes that the stock is displaying strong momentum and recommends regularly trailing profits due to the absence of specific technical resistance in the uncharted territory.
  • Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, maintains a positive bias, expecting further upward movement with next targets at Rs 148-164. Support is anticipated around the Rs 125 zone.
  • Ravi Singh, Founder of DRS Finvest, predicts a near-term target of Rs 150 but advises maintaining a strict stop-loss at Rs 120.
  • AR Ramachandran from Tips2trades suggests caution, stating that while IRFC is bullish, it is also overbought on daily charts. He recommends booking profits at current levels to avoid potential downside risk.

Budget Anticipation Impact and Market Activity

A surge in railway counters was observed following reports of a potential record-high Budget allocation for the sector. Vishal Periwal, Sector Analyst (Infra) at IDBI Capital, highlights the sharp gains in railway stocks, attributing them to anticipation of a substantial allocation in the upcoming Budget.

IRFC witnessed significant trading volumes, with 3.15 crore shares changing hands on BSE, surpassing the two-week average volume of 1.09 crore shares. The turnover on the counter reached Rs 403.59 crore, contributing to a market capitalization of Rs 1,70,883.78 crore.

As IRFC continues its upward trajectory, market participants are advised to monitor support levels and exercise caution, considering both the bullish sentiment and the potential for profit booking at current levels. Analysts remain optimistic about the stock’s performance in light of anticipated Budget allocations for the railway sector.

Also, read about Wipro Ltd’s Stock Surges 13% on Monday Following Robust ADR Performance