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Indian Railway Catering and Tourism Corporation or IRCTC share price today made a new lifetime high of 4,013 apiece. The Indian Railways' PSU stock opened with an upside gap of 50.30 per equity share and went on to climb new high — logging over 5.50 per cent intraday gain in early morning trade session. According to stock market experts, this sharp rise in IRCTC share price can be attributed to recent railways' asset monetization plan where market is assessing big gains for the IRCTC through more New Delhi railway station like lounges and private trains. They said that IRCTC stocks are in overbought condition and may witness sharp correction after profit-booking trigger. However, they also expected sharp bounce back in the counter as overall sentiment for IRCTC shares are highly bullish.

Highlighting the reason for rise in IRCTC share price; Rahul Sharma, Co-Founder at Equity99 said, "IRCTC shares have been rallying continuously from 2500 levels over aggressive plans of expansion and asset monetization. The rally was triggered after the company announcing a building world-class lounge at Delhi railway station. The company has also tied up with aviation companies and is no more an e-ticketing company. We are still bullish on this counter for the long term but in short term, we expect some correction as it has made a huge rally."

Advising investors to avoid fresh position in the counter; Santosh Meena, Head of Research, Swastika Investmart Ltd said, "IRCTC stocks have given a vehicle move in the last few days where all momentum indicators are suggesting an overbought territory that may lead to some correction or consolidation in the coming days where 4000 is a psychological hurdle. On the downside, 3400 to 3200 will be an immediate demand zone at any correction and any correction in this counter will be a buying opportunity for long-term investors."

Advising IRCTC shareholders to hold the counter further; Ravi Singhal, Vice Chairman at GCL Securities said, "IRCTC shares are expected to remain bullish throughout this month. But, fresh buying can' be advised without sharp correction. Those who hold IRCTC shares are advised to further hold the counter for immediate target of 4270 and 4420 apiece.'

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

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