Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Markets / Stock Markets/  IRCTC, IEX shares surge in relief rally. Key stock levels to watch
BackBack

IRCTC, IEX shares surge in relief rally. Key stock levels to watch

IRCTC shares were trading nearly 7% higher whereas IEX share price was up over 5% in Tuesday's early deals 

IRCTC, IEX shares fell from their record high levels in the past few sessionsPremium
IRCTC, IEX shares fell from their record high levels in the past few sessions

Shares of IRCTC and IEX rebounded in Tuesday's deals after being on a downward spiral since hitting their respective record high levels last week. IRCTC shares were trading nearly 7% higher at 4,301 apiece in Tuesday's early deals, whereas IEX's scrip was up over 5% at 736 on the BSE.

Indian Railway Catering and Tourism Corporation (IRCTC) hit its record high of 6,369 on October 19. The stock had been a consistent performer, giving stellar returns, since it made its debut in October 2019. However, the stock struggled to keep up with its rally in the past few sessions.

“IRCTC is showing a relief rally from a critical demand zone of 4000-3700 however 4500-4700 will act as a supply area and if it manages to take out this area then we can expect fresh bullish momentum towards 5200/5500 levels. On the downside, if it starts to trade below 3700 then we may see further selling pressure and it may head towards the 3000 mark however there is a higher possibility that it may remain sideways in the range of 4000-5000 for some time before getting any further direction," said Santosh Meena, Head of Research, Swastika Investmart.

IRCTC came under pressure last week after it was placed under the F&O ban list. While the stock is out of the ban list, the volatility is still at higher side, say analysts. 

“Traders are building fresh long positions due to huge correction in IRCTC which has a strong back due to its pure monopoly business, robust financials as well as the company's debt-free status. Technically also, IRCTC has a potential to touch the level of 4600 in near term with a strong support around 4000 levels," said Ravi Singhal, Vice Chairmain, GCL Securities Limited.

On the other hand, Indian Energy Exchange (IEX) is the premier electricity exchange in India, which facilitates trading of electricity. It commands a market share of around 95% in the power exchange market. 

The energy exchange's stock have been in focus after announcing bonus shares issue along with its second quarter earnings. For the past year, IEX has remained richly valued given its clean balance sheet, near monopoly and bright future prospects.

“IEX is respecting its 20-DMA which is currently placed at 714 level and if it slips below its 20-DMA then 650-620 will be the next critical demand zone. The overall structure is still bullish and it may resume its bullish momentum any time soon till it trades above the 600 mark. On the upside, the 800-820 area will act as a resistance zone while a move below 600 can lead to more selling pressure," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

IX board has recommended bonus issue of equity shares in the proportion of 2:1, subject to the approval of shareholders. The record date for the bonus issue is yet to be announced.

“The energy exchange's stock surged significantly in the past few sessions due its second quarter earnings and bonus issue announcement. Also, on September 1 last year, IEX launched the G-TAM product, a green-term-ahead market but that was not for sale or purchase of power the following day. IEX may touch 800-820 levels in near term having a strong support near 700 levels," said Ravi Singh, Head of Research & Vice President, ShareIndia.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 26 Oct 2021, 11:19 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App