IRCTC share price retraces after technical breakout. Good opportunity to buy?

IRCTC share price: Shares of Indian Railway Catering and Tourism Corporation or IRCTC today gave fresh technical breakout at ₹720 apiece levels while climbing to intraday high of ₹728.95 per share on NSE. However, profit booking soon triggered and IRCTC shares retraced from today's high and touched intraday low of ₹709.05 apiece in mid session during Tuesday deals.

According to stock market experts, IRCTC share price is in uptrend and it has formed strong base at ₹700 apiece levels. They said that fundamentally, IRCTC shares are looking promising for a long term investor as it has almost monopoly in internet ticket booking business. Apart from this, this is a PSU company, which is foraying in hospitality, online catering and other businesses.

Stock market experts went on to add that IRCTC is expected to launch a good number of new trains in next four to five years and this would benefit current shareholders of the company in long run. They advised investors to maintain buy on dips in IRCTC shares and advised current shareholders to maintain stop loss below ₹700 levels.

Why IRCTC share price is rising?

On fundamentals that are fueling IRCTC share price these days, Sandep Pandey, Founder & Director at Basav Capital said, "IRCTC is the only stock in railway sector that didn't moved much in recent rally. In fact, it is not participating the way other PSU stocks have participated in recent bull trends. However, the stock is one of those quality stocks that one can have in one's portfolio. As Covid pandemic is almost a passe now, the company is fast catching its internet railway ticket booking business. During Covid restrictions, IRCTC forayed in other segments like online air ticket and bus ticket booking, hotels and other hospitality business like online food order, etc. So, the company is waiting for a trigger and may soon catch momentum as PSU stocks are expected to remain under bulls' lens till Lok Sabha elections."

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Advising investors to add IRCTC shares in one's portfolio, Sumeet Bagadia, Executive Director at Choice Broking said, "IRCTC share price has given head and shoulder breakout on chart pattern at ₹720 per share levels. This breakout is accompanied by robust trading volume and is supported by a bullish candlestick pattern, suggesting a strong upward momentum in the stock."

IRCTC share price target

"The Relative Strength Index (RSI) is currently at 64.6 and trending upwards, signaling an increase in buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has shown a positive crossover from the oversold region, further contributing to the bullish sentiment. The confluence of these technical indicators suggests that IRCTC share price may have the potential to reach a target price of ₹764 in the near term," said Bagadia.

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Bagadia went on to add that on breaching this target, IRCTC share price may go up to ₹800 apiece levels in medium term. He advised IRCTC shareholders to hold the stock maintaining stop loss at ₹700 per share levels and wait for bounce back from lower levels.

Advising fresh investors to add IRCTC shares in one's protfolio, Sumeet Bagadia said, "One can buy IRCTC shares at current levels maintaining stop loss at ₹700 for near term target of ₹764 and medium term target of ₹790 to ₹800 per share levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.