IRFC shares hit a fresh 52-week high during intraday trade on Tuesday.

Explained: Why IRFC shares rallied over 9% today to hit fresh 52-week high

IRFC share price: At 10:42 am, shares of the railway PSU were up 9.30 per cent to Rs 142.20 on the National Stock Exchange (NSE). Just a day ago, the IRFC stock rallied 19 per cent to hit a 52-week high of Rs 134.70 apiece.

16 Jan 2024, 05:32 by India Today Business Desk · India Today

Shares of Indian Railway Finance Corporation (IRFC) surged sharply on Tuesday, continuing its strong run on Dalal Street.

At 10:42 am, shares of the railway PSU were up 9.30 per cent to Rs 142.20 on the National Stock Exchange (NSE). Just a day ago, the IRFC stock rallied 19 per cent to hit a 52-week high of Rs 134.70 apiece.

Today, IRFC shares again hit a fresh 52-week high of Rs 146.80 apiece, reflecting strong sentiments surrounding the stock. It is worth noting that the stock has delivered multibagger returns to investors in 2023, along with other companies such as RVNL and Mazagaon Dock.

But is there more upside? If analysts are to be believed, the railway PSU has more to deliver. Analysts quoted in a Business Today report are of the view that IRFC has the potential to deliver further upside.

What analysts say about IRFC stock

One analyst quoted in the report said IRFC's stock is displaying a strong technical setup, with potential support levels around Rs 120-115 and a possibility of climbing to Rs 164 on the higher side.

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Osho Krishan, Senior Research Analyst at Angel One, told Business Today that the stock's upward momentum and identifies support zones at Rs 120-115, with a crucial support level at 105-100. Given the uncharted territory, Krishan suggests regularly trailing profits.

Meanwhile, Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, highlights the stock meeting targets at Rs 114 and Rs 126. Maintaining a bullish bias, Koothupalakkal anticipates further upward movement with next targets at Rs 148-164. He added that support is expected around Rs 125, and breaching Rs 114 would weaken the overall trend.

Ravi Singh, Founder of DRS Finvest, also predicts a near-term target of Rs 150, emphasizing the importance of a strict stop-loss at Rs 120.

The surge in railway stocks, including IRFC, is attributed to expectations of a record-high budget allocation for the sector.

Published By:
Koustav Das
Published On:
Jan 16, 2024