IRFC Shares Surge 19%, Hits New One-Year High; Analysts Predict Further Upside

Introduction: Indian Railway Finance Corporation Ltd (IRFC) shares continued their remarkable ascent in Monday's trading session, reaching a fresh one-year high with a staggering rally of 18.80%, closing at Rs 134.70. This multibagger stock has witnessed an impressive 300% surge over the past year, prompting analysts to anticipate more gains in the near term.

Technical Analysis: Osho Krishan, Senior Research Analyst at Angel One: IRFC's robust upward momentum is expected to persist, with crucial support levels identified in the Rs 120-115 zone. The stock, currently in uncharted territory, has no specific technical resistance, making it advisable to regularly trail profits. A sacrosanct support lies around the 105-100 zone.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher: Having met the targets of Rs 114 and Rs 126, IRFC is poised for further upward movement. Strong bias is maintained, with next targets set at Rs 148-164. Support is expected at the Rs 125 zone, and a decisive breach below Rs 114 could weaken the overall trend.

Market Sentiment and Analyst Recommendations: DRS Finvest Founder Ravi Singh: Foreseeing a potential rise to Rs 150 in the near term, Singh advises maintaining a strict stop-loss at Rs 120.

AR Ramachandran from Tips2trades: While acknowledging IRFC's bullish stance, Ramachandran highlights overbought conditions on daily charts. He suggests investors book profits at current levels, cautioning that a daily close below Rs 120 may lead to a near-term target of Rs 99.

Budget Anticipation Boosts Railway Stocks: The surge in railway counters is attributed to speculation surrounding a record-high Budget allocation for the sector. Vishal Periwal, Sector Analyst (Infra) at IDBI Capital, notes the sharp gains as a prelude to the upcoming budget, suggesting anticipation of a substantial allocation for the railway sector.

Trading Volumes and Market Capitalization: IRFC witnessed substantial trading volumes, with 3.15 crore shares changing hands on BSE, significantly surpassing the two-week average volume of 1.09 crore shares. The turnover on the counter reached Rs 403.59 crore, contributing to a market capitalization of Rs 1,70,883.78 crore.

Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.