IRFC shares up 21% in two days as stock hits fresh one-year high; is more steam left?

Shares of Indian Railway Finance Corporation Ltd (IRFC) continued their strong upward march for the second straight session in Saturday's special trading session. The stock surged 10 per cent to hit a one-year high of Rs 176.39. It has jumped 20.59 per cent in just two days. That said, the multibagger scrip has rallied 437.77 per cent in a year and 75.74 per cent in January so far.

A majority of railway counters -- including IRFC -- have witnessed significant gains this month after it was reported that capex allocation for the sector in Budget could hit a record high. Budget 2024 will be presented on February 1.

On technical charts, support on the counter could be seen at Rs 160. Immediate resistance may be found at Rs 180 and a decisive close above this level is required for a further upside.

"Support will be at Rs 160 and resistance at Rs 180. A decisive close above Rs 180 level may trigger a further upside till Rs 200. Expected trading range will be between Rs 130 and Rs 200 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"IRFC stock price looks s bullish and also overbought on daily charts with next resistance at Rs 190. Investors should book profits at current levels as a daily close below support of Rs 160 could lead to Rs 132 in the near term," said AR Ramachandran from Tips2trades.

"The stock looks strong on charts. It has a revised near-term target price of Rs 200. Keep stop loss placed at Rs 160," said DRS Finvest founder Ravi Singh.

On BSE, around 1.47 crore shares changed hands today. The figure was lower than the two-week average volume of 2.65 crore shares. Turnover on the counter came at Rs 256.85 crore, commanding a market capitalisation (m-cap) of Rs 2,30,515.38 crore.

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 December 2023, promoters held 86.36 per cent stake in the 'Navratna' PSU.

(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.)

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