IREDA selloff: Stock hits 52-week low on Q2 earnings, analysts weigh in 

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) were stuck in the bear grip on Wednesday after the firm reported its Q2 earnings. The stock fell 4% to a 52 week low of Rs 102.85 against the previous close of Rs 106.50. Market cap of the firm fell to Rs 28,991 crore.

Jigar S Patel form Anand Rathi said, "IREDA is currently positioned near a crucial resistance zone of Rs 110, while Rs 103 remains an important support level. A decisive breakout above Rs 110 could strengthen the stock’s short-term bullish momentum and open the possibility of an upward move towards Rs 115. On the downside, Rs 100– Rs 103 is an important support zone. The stock is expected to trade within the broader Rs 100– Rs 115 range, with a sustained move above Rs 110 required to confirm further upside potential."

KKunal V Parar, VP of Technical Research and Algo at Choice Broking said, "IREDA continues to remain under sustained selling pressure, with the daily chart displaying a well-defined lower-high and lower-low formation, indicating a persistent bearish trend. The stock is trading significantly below its declining 50-day EMA, currently placed around Rs 112, suggesting that the broader trend remains weak and any short-term recovery could attract fresh selling pressure.

The stock has slipped below its previous support zone of Rs 108–110, which is now likely to act as immediate resistance. The daily RSI, hovering around 37, remains below the neutral 50 mark, reflecting weak momentum and the absence of meaningful buying strength.

As long as IREDA trades below Rs 110–112, the overall outlook remains negative. Sustained weakness below Rs 103–104 could extend the decline towards Rs 100, followed by Rs 95 and Rs 90 over the coming weeks. Any pullback towards Rs 108–110 is likely to face selling pressure, while only a sustained move above Rs 112–115 would indicate an improvement in the short-term technical structure."

Virat Jagad, Sr. Technical Research Analyst at Bonanza said, "IREDA is trading in a downtrend, forming lower highs and lower lows after breaking below the 200-day  EMA, indicating sustained selling pressure. The RSI is below the 50 mark and its average, reflecting bearish momentum. Support is placed at Rs 96.00– Rs 95.55, while resistance lies at Rs 112– Rs 113. Fresh buying is not recommended at current levels until a clear trend reversal emerges."

IREDA stock is also in a long-term downtrend, signals its simple moving averages. The stock trades below its 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 simple moving averages.

The stock is trading neither in the oversold nor in the overbought zone, indicates its RSI, which is at 41.3. A RSI value below 30 signals the stock is trading in the oversold zone and above 70 it signals is trading in the overbought zone.

IREDA stock touched an all-time high of Rs 310 on July 15, 2024.

In Q2, the firm's net Profit rose 0.5% to Rs 552 crore against Rs 549 crore a year ago.
Total income rose 14.0% to Rs 2,347 crore in the September quarter against Rs 2,058 crore in Q2 of the previous fiscal.

IREDA is a Mini Ratna (Category - I) government enterprise. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE). IREDA has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects for over 36 years.