As of September 9, 2024, at 11:02 AM, Indian Railway Finance Corporation (IRFC) shares are trading at ₹167.25, reflecting a decline of 1.56% from the previous closing price. The broader market, represented by the Sensex, is performing slightly better, trading at ₹81,341.19, up by 0.19%. During the trading session, IRFC has reached a high of ₹170 and a low of ₹165.1.
Main Points
Moving Averages and Support Levels
From a technical standpoint, IRFC is currently positioned above its 300-day Simple Moving Average (SMA) but below the shorter SMAs (5, 10, 20, 50, and 100 days). This indicates a potential bearish trend, as the stock is facing resistance at these shorter SMAs. The key support level is at the 300-day SMA, which is currently at ₹149.83.Here are the current SMA values for IRFC:
| Days | Simple Moving Average (SMA) |
|---|---|
| 5 | ₹175.08 |
| 10 | ₹178.15 |
| 20 | ₹179.40 |
| 50 | ₹186.48 |
| 100 | ₹175.47 |
| 300 | ₹149.83 |
Pivot Levels
The classic pivot level analysis identifies critical resistance and support levels for IRFC. The resistance levels are set at ₹173.35, ₹176.79, and ₹179.42, while the support levels are at ₹167.28, ₹164.65, and ₹161.21.
Trading Volume
As of 11 AM today, the trading volume for IRFC on both the NSE and BSE has decreased by 24.45% compared to the previous trading session. This decline in volume is significant, as it can indicate a lack of investor interest or confidence in the stock’s performance. High volume typically correlates with price movements, where an increase in price with high volume suggests a sustainable uptrend, while a decline with high volume may indicate further downward pressure.
Fundamental Analysis
Financial Ratios
From a fundamental perspective, IRFC has a Return on Equity (ROE) of 13.66%. The current Price-to-Earnings (P/E) ratio stands at 34.33, and the Price-to-Book (P/B) ratio is at 4.37. These ratios suggest that the stock may be overvalued compared to its earnings and book value.
The company’s shareholding structure reveals a strong promoter holding of 86.36%, with mutual fund (MF) holding at 0.52% and foreign institutional investor (FII) holding at 1.11%. Notably, MF holding has decreased from 0.71% in March to 0.52% in June, while FII holding has seen a slight increase from 1.08% to 1.11% in the same period.
Market Performance
In comparison to its peers, IRFC’s stock is experiencing a downward trend while some peers, such as Mindspace Business Parks REIT and Dhunseri Investments, are on the rise. The broader market indices, Nifty and Sensex, are both up by approximately 0.2% and 0.19% respectively.
Market Sentiment and Outlook
Overall, the technical analysis indicates a bearish trend for IRFC, with continued downward pressure on the stock price. The decline in trading volume further supports this sentiment, suggesting that investors may be cautious about entering new positions in this stock.
Note: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
