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IRCTC share price: Shares of Indian Railway Catering and Tourism Corporation (IRCTC) rally took a pause today after surging on last three successive sessions. IRCTC share price today opened downside and went to hit intraday low of 609.30 per share mark on NSE in early morning deals, logging around 1.50 per cent dip from its Tuesday close of 620 per share levels. 

According to IRCTC share price history, the Indian Railways' PSU stock has been under sell-off heat after ushering in June 2022. After making a close of 695 on NSE on 30th May 2022, IRCTC shares went on to correct up to 574 per share levels till 20th June 2022. However, after this 574 close, the stock made a sharp rebound of near 7 per cent surge in last one week.

According to stock market experts, recent rise in IRCTC share price nothing but a 'dead cat bounce' as the Indian Railways' PSU share is trading sideways with negative bias. They said that IRCTC shares will remain under pressure as speculations of gloomy global economic outlook will impact Indian stock market too. As inflation is also a big concern for Indian and other major economies, middle class spending is expected to go down. As IRCTC caters mainly to the middle class, market is expecting tepid numbers from the state-owned company inn upcoming quarters.

Speaking on IRCTC share price movement in recent sessions, Ravi Singhal, Vice Chairman at GCL Securities said, "Rally in IRCTC share price in last one week is nothing but a dead cat bounce. The stock had fallen from around 700 odd levels to 570 levels in this month and some relief rally was widely expected in the scrip. Overall, IRCTC share price trend is sideways with negative bias."

Ravi Singhal of GCL Securities went on to add that the stock mainly caters to the middle class, which will be worst affected if the slowdown speculations come true. Apart from this, middle class spending is also expected to nosedive as inflation is a big worry for India and other countries. So, market is expecting that IRCTC business volume will continue to test waters in upcoming few quarters and hence the stock may further go down giving such dead cat bounce from time to time.

On what IRCTC share price chart pattern indicates, Rohit Singre, ABP — Technical Research at Bonanza Portfolio said, "IRCTC stocks are showing positive divergence on chart pattern and in short term, it may go up to 700 levels, the level from where it has tumbled after ushering in June 2022. So, those who have this stock in their portfolio are advised to continue hold the stock with strict stop loss at 570 while high risk traders can buy IRCTC shares if it falls below 600 again. But, one must maintain a strict stop loss at 570 while taking any fresh position."

For those who have medium to long term view, Ravi Singhal of GCL Securities said, "One should wait for some time as the rebound from recent lows may continue for some time. But, once the profit booking triggers, it may go down up to 550 to 540 levels in short to medium term. Hence, if someone is interest in value pick at discounted price, then 540 to 550 will be a good buying zone for long term maintaining stop loss at 535 apiece levels."

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

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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