IRCTC share price surged 6 per cent to a new record high of Rs 3,041.20 on BSE in intraday deals. So far in September, Indian Railway Catering and Tourism Corporation shares have rallied 10.38 per cent, as compared to a 1.3 per cent rise in the BSE Sensex. Analysts say that IRCTC is forming higher high and higher low chart formation which is bullish in nature. With the reopening of the economy post COVID-19 the public transport set to increase to higher levels. “As the stock has come out of a small consolidation zone of 2500-2750, it is now ready for higher levels till 3150-3250 in the near future,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online.
Wagh also added that a strong poll flag pattern is in progress. “One should hold it with stop loss below 2500. Those who want to buy should wait till 2800 for effective entry,” he said. In traded volume terms, 1.65 lakh shares have exchanged hands on BSE, while a total of 41.81 lakh units have traded on NSE, so far in the day. Earlier this month, Indian Railways announced the Shri Ramayana Yatra, a tour by Deluxe AC Tourists trains, which will begin after Diwali in November.
In the current expiry (i.e. September 2021), the IRCTC stock has reported a 14.5 per cent rally so far. Analysts say that a spike in volume and rise in open interest signal that major participants are in favour of bulls. “Its 20-week and 50-week EMAs are sloping upwards. The weekly RSI is positively poised. As per the current set-up, we believe the stock will keep exploring uncharted territory and move towards Rs 3,180,” Jatin Gohil, Technical Analyst, Reliance Securities, told Financial Express Online. This suggests a further 4.5 per cent jump from the current levels. Gohil added saying that the risk reward is not favourable for fresh long position at this juncture. “Hence, fresh long positions can be initiated on dips towards Rs 2,700-2,550,” he said.
In the last five days, IRCTC share price has surged 10.67 per cent, and 21.18 per cent in one month. While it has more-than-doubled so far in the year, rising a whopping 108.62 per cent. In comparison, BSE Sensex has added 22 per cent on a year-to-date basis.
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