Analysts See IREDA's Rally Continuing, Could Breach ₹260 Levels And More

IREDA‘s share price jumped over 9% to hit a new all-time high of ₹225.88 on Wednesday.

What Happened: The public sector undertaking (PSU) stock has been on a tear ever since its listing last year in November. Since then the stock has surged over 250%. In just the last six months, the stock has gone up over 110%.

What Are Analysts Saying: Jigar S Patel, senior manager – technical research analyst, Anand Rathi Shares and Stock Brokers said that over the past three months, IREDA has been trading within an ascending channel, indicating a gradual upward trend in its stock price.

Anand Rathi/Tradingview.

“Recently, the stock reversed its direction after touching the 21-day Exponential Moving Average (DEMA), a key technical indicator that helps identify short-term trends. Prior to this reversal, IREDA had been consolidating within a range of ₹175-185, suggesting a period of accumulation which is typically viewed as a positive sign for future price movements. From an indicator perspective, the Relative Strength Index (RSI) on the daily chart has entered above the 70 level, which is a strong bullish signal indicating that the stock is gaining momentum,” Patel added.

He further said that the technical target for IREDA is projected to be at the upper end of the ascending channel, around the ₹240-242 zone.

Anshul Jain, head of research at Lakshmishree, said that the PSU stock has recently broken out of a significant 97-day rounding bottom pattern at the 210 level, signalling a bullish move. “This pattern is known for indicating a potential reversal in market sentiment. Throughout the formation, trading volumes remained shallow, suggesting a period of accumulation. As IREDA heads towards its target of 290, investors are likely to see increased interest in the stock. The substantial volume on the breakout reinforces the reliability of this pattern, making IREDA a strong contender for continued gains in the renewable energy sector,” he added.

Price Action: IREDA’s share price was up 8.91% to trade at ₹223.65 on Wednesday afternoon.

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