IRCON shares hit one-year high on arbitration award win; what's next on tech charts: Rs 200 or Rs 160?

Shares of IRCON International Ltd rose 2.14 per cent to hit their one-year high price of Rs 181.65. The stock gave up its gains as the session progressed and was last seen trading 0.31 per cent lower at Rs 177.30. At this price, the multibagger stock has ascended by 197.73 per cent on a year-to-date (YTD) basis and 110.65 per cent in the last six months.

The International Chamber of Commerce (ICC) pronounced an award in favour of IRCON with respect to a matter of arbitration with Eskom Holdings SOC. The ICC has given an award of Rs 103.62 crore to IRCON, against claims of Rs 115.98 crore. The competent authority of IRCON has accepted the award.

On technical setup, support on the counter could be seen in the 160-170 range. On the higher, an analyst said IRCON is likely to see Rs 185 level in the near term. One of them also mentioned that expected trading range for next couple of months would be between the Rs 155 and Rs 200 zone.

"Support will be at Rs 160 and resistance at Rs 185. Expected trading range will be between Rs 155 and Rs 200 for next couple of months," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

Also read: IRCON International shares cracked 9% after opening of two-day OFS. Here's why

"IRCON is bearish on daily charts with strong resistance at Rs 180. A daily close below support of Rs 170 could lead to a target of Rs 154 in the near term," said AR Ramachandran from Tips2trades.

"The stock may hit Rs 185 level in the near term. Keep stop loss placed at Rs 167," said DRS Finvest founder Ravi Singh.

The counter was 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 64.82. 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 19.28 against a price-to-book (P/B) value of 3.06.

The scrip has an analyst target price of Rs 148, Trendlyne data showed, suggesting a potential downside of 16 per cent in a year. It has a one-year beta of 0.7, indicating low volatility on the counter.

The government has recently launched an offer-for-sale (OFS) to sell up to 8 per cent stake in IRCON.

IRCON International is an engineering and construction company with specialisation in transport infrastructure. The PSU was established in 1976. The Centre has granted 'Navratna' status to the state-owned firm.

 

(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.)

Also read: SpiceJet shares hit 52-week high after airline expresses interest to take over Go First

Also read: Top stocks to watch on December 19, 2023: Vedanta, HCL Technologies, GMR Airports, Aurionpro Solutions, Mysore Paper Mills and more