IRCTC shares rebound 73% from 52-week low; can they cross Rs 1,250 mark?

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) have gained 73.19% from their 52-week low in less than a year. The railway sector stock, which touched a 52-week low of Rs 557.15 on March 29, 2023, ended at Rs 964.65 on Friday, delivering 73.14% returns during the period.

IRCTC stock hit a 52 week high for Rs 1049.75 on January 23 this year. Before the January peak, the IRCTC stock last crossed the Rs 1,000 mark in mid-October 2021. The stock hit a record high of Rs 1278.60 on October 19 in the same year.

IRCTC shares ended 3.07% higher at Rs 964.65 on Friday against the previous close of Rs 935.95 on BSE. The railway stock opened higher at Rs 946.70.

It gained 3.63% intraday after the state-owned firm said it has joined hands with Bundl Technologies (Swiggy Foods) for the supply and delivery of pre-ordered meals through the IRCTC e-catering portal as a proof of concept in the first phase at four railway stations, i.e., Bengaluru, Bhubaneswar, Vijayawada, and Visakhapatnam. The eCatering service through Bundl Technologies may be available soon.

Total 7.68 lakh shares of the firm changed hands amounting to a turnover of Rs 73.88 crore on BSE. Market cap of IRCTC rose to Rs 77,172 crore.  

IRCTC stock has a one-year beta of 0.7. This signals the stock has low volatility.

In terms of technicals, the relative strength index (RSI) of IRCTC stands at 50.2, signaling it's trading neither in the overbought nor in the oversold territory. The large cap stock is trading higher than the 5 day, 10 day, 100 day, 150 day and 200 day moving averages.

Aditya Gaggar Director of Progressive Shares said, "In January 2024, the stock gave a breakout from a Rounding Bottom formation and inched slightly higher but with the market fluctuations, the stock corrected from its highs to complete its pullback. As per the pattern breakout, the target is Rs 1270."

Riyank Arora, Technical Analyst, Mehta Equities said, "The stock has touched a crucial resistance zone of Rs 970-975 on its daily charts. The overall trend looks positive as the stock continues to make higher highs and higher lows. It is expected that any pullback towards the Rs 930-935 zone would be a good buying opportunity for the stock. With the stock moving above its 5-period and 9-period EMA (Exponential Moving Average), the momentum looks strong, and the stock seems poised for potential targets of Rs 1050 and Rs 1100."

Abhijeet from Tips2Trades said, "IRCTC stock price is sideways to bullish on the Daily charts with strong resistance at Rs 994. A daily close above this resistance could lead to target of Rs 1040 in the near term. Support will be at Rs 917."

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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