IRFC Share Price Declines 1.87 Percent; Support at Rs 108 and Resistance at Rs 136
IRFC share price has been declining over the last few weeks. The stock closed 1.87 percent lower on Thursday, declining to Rs 117. The stock has declined by 28 percent over last six months and majority of decline has come during the last six weeks. TopNews Team has reviewed IRFC's recent performance, technical trends, Fibonacci levels, and key support and resistance levels, offering actionable insights for investors.
IRFC’s Stock Performance and Key Metrics
Current Market Snapshot
IRFC’s stock has seen significant volatility over the past year, with a 52-week high of Rs 229.00 and a low of Rs 108.04. At present, the stock is trading at Rs 117, showing signs of consolidation.
Analyst View
Gaurav Goel, Founder and Director of Fynocrat Technologies, shared insights on IRFC's stock performance, highlighting its current position 49% below its 52-week high, indicating a phase of weakness. Despite this, Goel emphasized the company’s consistent financial growth, with an average revenue increase of 15% and a median profit rise of 11%. Additionally, he noted that IRFC maintains a Return on Equity (ROE) of 13.7%, demonstrating its strong ability to generate returns even within a highly regulated sector.
Key Financial Metrics:
| Metric | Value |
|---|---|
| Current Market Price | Rs 117 |
| 52-Week High | Rs 229.00 |
| 52-Week Low | Rs 108.04 |
| Market Capitalization | Rs 1.54 lakh crore |
| P/E Ratio | 23.42 |
| Dividend Yield | 1.28% |
Technical Analysis: Candlestick Patterns and Market Trends
Recent Candlestick Patterns
Bearish Engulfing Pattern observed in recent sessions, indicating a possible short-term downside.
Doji Candlestick formation suggests market indecision, signaling potential volatility ahead.
RSI (Relative Strength Index) near 45, indicating the stock is neither overbought nor oversold, leaving room for movement in either direction.
Trend Indicators
50-day Moving Average (DMA): Rs 130.50
200-day Moving Average (DMA): Rs 145.20
The stock is currently trading below both moving averages, suggesting a bearish trend in the short term.
Fibonacci Retracement Levels for IRFC
Using the 52-week high (Rs 229.00) and low (Rs 108.04), the Fibonacci retracement levels for IRFC are:
| Retracement Level | Price (Rs) |
|---|---|
| 23.6% | Rs 136.52 |
| 38.2% | Rs 156.97 |
| 50.0% | Rs 168.52 |
| 61.8% | Rs 180.08 |
| 78.6% | Rs 200.38 |
Analysis: If the stock breaks above Rs 136.52 (23.6% retracement), it could signal bullish momentum. However, if it falls below Rs 108.04, further downside is likely.
Support and Resistance Levels
Key Support Levels
Strong Support at Rs 115 – A historically tested level where buying interest has been observed.
Major Support at Rs 108 – The 52-week low, acting as a crucial downside buffer.
Key Resistance Levels
Immediate Resistance at Rs 130 – Aligns with the 50-DMA, making it a key breakout level.
Major Resistance at Rs 145 – The 200-DMA; a breakout above this could signal trend reversal.
Investment Outlook and Final Thoughts
Bullish Factors
Consistent revenue and profit growth, with steady financing for railway projects.
Attractive dividend yield, appealing to long-term investors.
Potential for recovery if it breaks Rs 130, aligning with market trends.
Bearish Factors
Stock remains below key moving averages, signaling short-term weakness.
Regulated sector constraints may limit rapid expansion.
Resistance at Rs 145 needs to be broken for strong upside momentum.
