IRFC shares climbed 6% today; what's next on technical charts?

Shares of Indian Railway Finance Corporation (IRFC) Ltd on Monday jumped 7.60 per cent to hit a high of Rs 197.40. The stock eventually settled 6.41 per cent higher at Rs 195.20. At this price, it has gained 94.48 per cent on a year-to-date (YTD) basis.

The stock saw heavy trading volume today as around 1.29 crore shares changed hands. The figure was higher than the two-week average volume of 95.88 lakh shares. Turnover on the counter came at Rs 246.80 crore, commanding a market capitalisation (m-cap) of Rs 2,55,097.24.

On technical setup, support on the counter will be in the 180-185 zone. And immediate resistance could be seen at Rs 200. With that being said, an analyst suggested entering at current levels, keeping stop loss placed at Rs 180.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a brief correction recently. It is currently indicating a pullback to improve the bias. With charts looking good, one can enter at current levels with a stop loss of Rs 180 for expected targets of Rs 207 and Rs 222 levels."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 183 and resistance at Rs 200. The expected trading range will be between Rs 175 and Rs 210 in the short term."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock has potential to hit an upside target of Rs 200 in the near term. Keep a strict stop loss placed at Rs 185 for this trade."

Separately, the rail PSU has reappointed Akhil Rohatgi & Company, Practicing Company Secretaries as its secretarial auditor.

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. As of June 2024, the government held an 86.36 per cent stake in the 'Navratna' PSU.