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Published: January 16, 2024
Updated: January 16, 2024

IRFC Shares Surge 19%, Analysts Bullish on Further Upside

Indian Railway Finance Corporation Ltd (IRFC) experienced a remarkable surge in its shares, reaching a fresh one-year high with an 18.80% rally, hitting Rs 134.70. Analysts are optimistic about the stock's potential for further gains in the near term.

Market Performance:

In Monday's trading session, IRFC witnessed substantial trading volumes, with 3.15 crore shares changing hands on the BSE, well above the two-week average of 1.09 crore shares. The impressive turnover on the counter amounted to Rs 403.59 crore, resulting in a market capitalization of Rs 1,70,883.78 crore.

Technical Analysis and Projections:

Analyzing the technical setup, support levels are identified in the Rs 120-115 zone, while the stock is anticipated to climb to Rs 164 on the higher side. Analysts foresee sustained upward momentum, emphasizing the importance of regularly trailing profits.

Diverse Analyst Perspectives:

Various analysts offer their insights. Experts anticipate the stock reaching Rs 150 in the near term, emphasising the importance of a strict stop loss at Rs 120. On the other hand, strategic analysts expect the bullish sentiment but suggest caution, advising investors to book profits at current levels due to potential overbought conditions.

Budget Anticipation Impact:

The surge in railway counters aligns with expectations of a record-high budget allocation for the sector. Market experts attribute the sharp gains to the anticipation of a substantial budget allocation for railways.

IRFC's recent rally, coupled with analysts' positive projections and the overall bullish sentiment in the railway sector, positions the stock favourably for potential further gains. Investors are advised to monitor key support levels and consider expert recommendations while navigating this dynamic market.