IRCTC Share Price Touches 52-week Low; Stock Strongly Bearish on Technical Charts
IRCTC share price touched 52-week lows during today's session and the technical charts suggest strongly bearish trend for the PSU counter. IRCTC touched intraday low at Rs 663.45 and was trading near lows at the time of publication of this report. IRCTC could take support from lower levels but any position should be taken only when the trend changes. Buying at current levels isn't advisable for traders and short term investors. Trades should only be taken on change in trend to positive.
Fundamental Overview: Key Financial Metrics
IRCTC’s financial strength remains robust, driven by its monopoly in railway ticketing services and steady revenue from catering and tourism operations. Below is a snapshot of its key financial metrics:
| Metric | Value |
|---|---|
| Current Price | Rs. 689.90 |
| 52-Week High | Rs. 1,138.90 |
| 52-Week Low | Rs. 663.45 |
| Market Cap | Rs. 53,060 crore |
| P/E Ratio | 42.83 |
| Dividend Yield | 1.36% |
Technical Analysis: Evaluating Market Trends
1. Candlestick Pattern Analysis
Bullish Hammer Formation: Observed near Rs. 663.45, suggesting potential price reversal from recent lows.
Bearish Engulfing Pattern: Found around Rs. 700, indicating resistance at higher levels.
200-Day Moving Average (DMA): Currently at Rs. 780, acting as a crucial resistance level for a potential breakout.
If IRCTC sustains above Rs. 700, it could witness renewed buying interest. However, failure to breach resistance levels may lead to consolidation or further downside.
2. Fibonacci Retracement Levels
Key Fibonacci retracement levels are calculated based on the 52-week high (Rs. 1,138.90) and the 52-week low (Rs. 663.45):
| Retracement Level | Price (Rs.) |
|---|---|
| 23.6% | Rs. 790 |
| 38.2% | Rs. 865 |
| 50.0% | Rs. 901 |
| 61.8% | Rs. 937 |
| 78.6% | Rs. 1,000 |
A break above Rs. 790 could lead to Rs. 865 as the next target, while failure to hold Rs. 663 could push the stock towards Rs. 630 levels.
3. Support and Resistance Levels
Immediate Support: Rs. 663.45
Major Support: Rs. 630.00
Immediate Resistance: Rs. 700.00
Major Resistance: Rs. 780.00
A sustained move above Rs. 700 would signal short-term strength, while any dip below Rs. 663 might indicate further downside pressure.
Investment Strategy: What Should Investors Do?
For Short-Term Traders
Watch for breakout above Rs. 700, which could trigger a rally towards Rs. 780.
Set a stop-loss at Rs. 663 to manage downside risk.
A breakdown below Rs. 663 could lead to Rs. 630 as the next support level.
For Long-Term Investors
Accumulation Zone: Rs. 650 – Rs. 700 for long-term positions.
Target: Rs. 865 – Rs. 937 in the next 12-18 months.
Investment Rationale: Digital transformation in ticketing, rising tourism, and exclusive railway catering make IRCTC a long-term growth stock.
