Indian Railway Finance Corporation (IRFC) shares witnessed a significant rally, surging over 9% to hit a fresh 52-week high. This article dives into the factors driving the rally and provides insights from analysts on the stock’s potential.
IRFC shares experienced a significant surge, rising over 9% to reach Rs 142.20 on the National Stock Exchange (NSE). Just a day prior, the stock had rallied 19%, hitting a 52-week high of Rs 134.70. The railway PSU’s strong performance has attracted investor attention, delivering multibagger returns in 2023, along with companies like RVNL and Mazagaon Dock.
Analysts’ perspective on IRFC stock:
According to analysts quoted in a Business Today report, IRFC has the potential for further upside. One analyst highlighted the stock’s strong technical setup, with potential support levels around Rs 120-115 and a possibility of climbing to Rs 164 on the higher side. Another analyst identified crucial support levels at Rs 105-100, suggesting regular trailing of profits. Additional analysts maintained a bullish bias, predicting next targets at Rs 148-164 and a near-term target of Rs 150.
Exploring potential support and resistance levels:
Osho Krishan, Senior Research Analyst at Angel One, identified support zones at Rs 120-115 and crucial support at 105-100. Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, highlighted meeting targets at Rs 114 and Rs 126, with support expected around Rs 125. It is worth mentioning that breaching Rs 114 might weaken the overall trend.
Other factors contributing to the surge in railway stocks:
The surge in railway stocks, including IRFC, is attributed to the market’s expectations of a record-high budget allocation for the sector. The government’s focus on boosting infrastructure and investment in the railway industry has further fueled investor optimism.
The rally in IRFC shares is due to strong investor sentiments surrounding the stock, driven by expectations of a record-high budget allocation for the railway sector.
What is the potential upside for IRFC stock according to analysts?
Analysts suggest that IRFC stock has the potential to climb to levels around Rs 164 on the higher side.
Analysts have identified support levels for IRFC shares around Rs 120-115 and crucial support at 105-100.
Analysts have predicted near-term targets for IRFC shares at Rs 148-164 and Rs 150.
Are there any factors other than budget expectations driving the surge in railway stocks?
Yes, apart from budget expectations, the government’s focus on infrastructure development and investment in the railway industry have contributed to the surge in railway stocks, including IRFC.
By exploring the reasons behind the surge in IRFC shares and providing insights from analysts, it is evident that the stock has garnered significant investor attention. However, investors should exercise caution and consider expert opinions before making investment decisions.