IREDA shares likely to stay sideways, downside capped: Ruchit Jain

Indian Renewable Energy Development Agency (IREDA)  investors hoping for a quick earnings-led revival may need to temper expectations. The stock, which has remained an underperformer for an extended period, is now seen entering a prolonged consolidation phase, with MOFSL's technical analyst Ruchit Jain saying the sharp price damage may be over but meaningful upside could still take time to emerge.

For traders such as those stuck at Rs 139, the message is clear: the downside may be limited from current levels, but patience will likely be tested as the IREDA stock searches for direction.

From IPO promise to prolonged underperformance

IREDA had generated strong optimism after its IPO, with the stock witnessing a substantial post-listing rise. That optimism, however, has faded over the past two years as the counter slipped into a sustained downtrend and failed to regain momentum even as broader pockets of the market saw selective recoveries.

Jain underscored the scale of the correction, noting that “exactly two years ago, in July 2024, the stock made a high of around Rs 300 to Rs 310.” From those levels, he said, “we witnessed a correction of Rs 210,” marking a deep price-wise reset in investor expectations.

Why the pain may now shift from price to time

The current phase, according to the analyst, is less about another steep fall and more about time correction. “Now what we are seeing [is] that the stock is going through a time-wise corrective phase,” he said, suggesting that IREDA may continue to move in a narrow band rather than stage an immediate breakout.

What investors should watch now

Jain's near-term view remains cautious but not outright bearish. “Price-wise downside seems to be limited, but the stock can spend some time or consolidate within a range over next few weeks or even few months,” he said.

He pointed to the stock’s earlier rebound from Rs 110 to Rs 140 in April as evidence that intermittent pullbacks are possible even within a weak broader structure. His advice to traders is tactical rather than aggressive: wait for such rallies and “review at that time whether you should exit or not.”