IREDA stock witnessed major selling today and touched low of Rs 164. The stock recovered from lower levels as sustained buying was witnessed in the counter. Rs 164 could now act as an immediate support for IREDA. Indian markets opened negative today and witnessed selling pressure. However, after few hours of trading low, recovery was witnessed in the markets.

Technical Analysis

Candlestick Patterns Analysis

A review of IREDA's daily candlestick chart reveals the formation of a bearish engulfing pattern on February 12, 2025. This pattern occurs when a larger black candlestick fully engulfs the previous day's smaller white candlestick, signaling potential bearish sentiment among traders. Such a formation often indicates a reversal of the current uptrend, suggesting that sellers may be gaining control.

Fibonacci Retracement Levels

Applying Fibonacci retracement analysis from the 52-week high of ₹310.00 to the 52-week low of ₹121.05 yields the following key levels:

23.6% Retracement Level: ₹174.87
38.2% Retracement Level: ₹202.68
50% Retracement Level: ₹215.53
61.8% Retracement Level: ₹228.38
76.4% Retracement Level: ₹256.19
The current closing price of ₹176.50 is marginally above the 23.6% retracement level, suggesting that this level may act as immediate support. A breach below this could lead to further declines towards the 38.2% level at ₹202.68.

Support and Resistance Levels

Analyzing recent price movements, the following support and resistance levels have been identified:

Immediate Support: ₹173.26
Secondary Support: ₹169.81
Immediate Resistance: ₹182.30
Secondary Resistance: ₹187.89
The stock's recent decline below the immediate support level of ₹173.26 indicates increased selling pressure. If the price fails to reclaim this level, it may test the secondary support at ₹169.81. Conversely, a move above the immediate resistance at ₹182.30 could signal a potential reversal.

Investment Considerations

The bearish engulfing pattern observed suggests caution, as it may indicate further downside potential. However, the proximity to key Fibonacci support levels could provide a foundation for a rebound if buying interest emerges. Investors should closely monitor trading volumes and price action around these critical levels to make informed decisions.