IREDA share price declined 5.39 percent on Friday as selling pressure continued in some of the most traded public sector stocks. Indian markets opened positive on Friday but selling was witnessed within couple of hours of trade and NSE Nifty was down by more than 120 points at 11 am. IREDA has support at Rs 165 and if the stock trades below this level on Monday, we can expect further selling. A close below Rs 165 could mean lower levels for IREDA during next week. Traders should carefully watch this level. If IREDA manages to get support from Rs 165, we can expect positive move towards next resistance at Rs 185.

Technical Analysis: Key Indicators to Watch

1. Candlestick Pattern Analysis
A review of IREDA’s daily candlestick chart indicates the following trends:

Hammer Pattern Near Support: A hammer candlestick suggests a potential reversal from lower levels, indicating buyer interest at Rs 167.
Resistance at Rs 180-185: If the stock breaks this range, it could see further upside momentum.
Bearish Trends on Lower Volumes: A fall below Rs 165 could indicate weakness, triggering more downside risk.

2. Fibonacci Retracement Levels
Fibonacci retracement levels identify support and resistance zones for IREDA.

Key Observations:

Rs 192.93 (61.8% retracement) acts as a strong resistance level.
A break below Rs 165.78 could trigger further downside pressure.
If the stock moves above Rs 215.53 (50% retracement), it signals a potential bullish reversal.

3. Support and Resistance Levels
Understanding support and resistance levels helps investors plan their buying and selling strategies.

If IREDA remains above Rs 165, it could see a bounce toward Rs 180. However, breaking below Rs 165 may signal further weakness.

Long-Term Perspective for IREDA:

IREDA remains a strong pick for investors looking at India’s renewable energy growth story.
However, valuations remain slightly elevated, so buying on dips is advisable.