IRCTC shares up over 3% today. Does it have further upside?
At around 12 pm, IRCTC shares were trading 3.47 per cent higher at Rs 668.85 apiece.
In Short
- IRCTC shares rebound 3% after Q1 dip; technical outlook positive
- Q1 profit down 7%, revenue up 17.5% to Rs 1,001.8 crore
- Technical analysis suggests bullish triangle breakout and potential gain
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) rebounded more than 3 per cent after falling sharply in the previous trading session, following its disappointing Q1 report card.
At around 12 pm, IRCTC shares were trading 3.47 per cent higher at Rs 668.85 apiece. In the previous trading session, the company’s shares fell after its net profit declined by 7 per cent in the April-June quarter.
The company’s profit declined to Rs 231 crore due to an exceptional loss and lower operating margin, while the revenue from operations jumped 17.5 per cent to Rs 1,001.8 crore.
Despite the weak performance, technical analysis indicates that the stock could gain going forward.
Gaurav Bissa, VP, InCred Equities, said, "IRCTC has been trading in the 610-650 range since the last few weeks. It failed to participate in the rally seen in the PSU space. However, the stock is now witnessing a bullish triangle breakout on the weekly charts which will be confirmed on a close above 670 levels.”
“The volumes have been trading above 20WEMA since the last couple of weeks, which is a sign of strong accumulation. The stock has witnessed strength on the back of a breakout in RSI on the weekly charts which can give a fresh thrust to the stock price,” he added.
“Investors can buy the stock at current levels for an upside till Rs 750 with stop loss placed at Rs 625 levels.”
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts are their own and do not necessarily reflect the views of the India Today Group.)
