IRFC Shares Sink 3% Today: What Are Technical Analysts Saying

IRFC share price jumped back in the red on Thursday after ending higher on Wednesday. The railway stock went down over 3% to hit an intraday low of ₹147.40.

What Happened: Shares of the railway company have been on an unstoppable run at the bourses over the past year. However, the stock has remained under pressure for the past few weeks. In the last seven sessions, the stock has closed lower five times. The company on Wednesday announced that it will post its earnings for the quarter ending March on May 20.

What Are The Charts Saying? “Delving into the monthly chart, IRFC demonstrates a notable fourth consecutive month of inside bar formation, signalling a phase of contraction in market volatility,” Anshul Jain, head of research at Lakshmishree. He added that this pattern is often observed before significant price movements, suggesting an imminent breakout or breakdown.

See Also: SBI Q4 Results: Strong Profit Beat Sends Shares Climbing Over 2%

“Adding to the intrigue, the daily chart unveils a compelling 55-week-long cup and handle pattern in the making. The neckline, positioned at the previous month’s high of approximately 164 levels, acts as a crucial resistance threshold. Should IRFC breach this level decisively, technical analysis indicates a breakout target around the 210 mark,” he added.

Riyank Arora at Mehta Equities said that the stock is experiencing a minor pullback towards its Anchor VWAP support level of 145.00 and is observed to be trading in a bullish uptrend. “With the overall trend being positive and the stock making higher highs, coupled with a positive outlook on railway stocks, it is expected that the stock will head higher towards potential targets of 165 and 180. From a trader's perspective, a strict stop-loss should be set at the 140 mark,” the analyst added.

Price Action: IRFC share price was down 3.74% to trade at ₹146.55 in the late hours of trading on Thursday.

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