As IRFC shares sink 50% from peak, why scaling crucial resistance could be a tall order?
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Shares of Indian Railway Finance Corporation (IRFC) remain off track despite double-digit growth in Q1 net profit. The stock has fallen 3% since the results, extending a broader downtrend — 30% over the past year and nearly 50% from its 52-week high. Technical charts point to a weak setup, with the recent slip below the crucial Rs 130 mark turning it into a stiff resistance. Experts caution that reclaiming this level could be a tall order for the railway PSU stock. IRFC's underperformance has ensured that the stock trades below its 50-day and 200-day simple moving averages (SMAs) of Rs 134.3 and Rs 136.4, respectively. Nilesh Jain, Head Vice President, Equity Research Technical and Derivatives at Centrum Broking said that IRFC shares are currently trading in an oversold territory and he sees the chart structure largely weak. While the stock finds support at Rs 124 while the resistance at Rs 130. Echoing similar sentiments, Anuj Gupta,...