Indian Renewable Energy Development Agency (IREDA) Ltd. The four-day decline in shares has stopped. The stock fell 10% during these four days of decline. Now in such a situation, the biggest question is whether the bullish phase of the stock has started? When will IREDA reach its all-time high level of Rs 310 per share?
What does the chart say?
Technically, IREDA shares are still below its 100-day moving average around ₹224. During the four-day decline, IREDA’s Relative Strength Index (RSI) fell to the level of 33, which is close to the ‘oversold’ zone. An RSI below 30 means the stock is in the ‘oversold’ zone.
Experts’ opinion
InCred Equities says IREDA had a very strong rally this year with strong volumes. However, in recent times this stock has fallen more than 30% from the top. It is trading below the 89-day exponential moving average for the first time and is also accompanied by a wedge breakdown. It is also trading in the formation of lower highs and lower lows as a characteristic of a downtrend, but the decline is mainly due to lack of volumes, which suggests upside from a close above ₹235 levels. The rise may begin again.
Jigar Patel of Anand Rathi says IREDA has seen a sharp fall of almost 100 points after reaching its all-time high of ₹310. Due to which its stock value declined by 33%. In the current situation, the price action has stabilized near the previous breakout zone, which indicates a possible retest level in the charts. Technically, the daily Relative Strength Index (RSI) has formed a sharp, V-shaped recovery around the 33 level, indicating a possible reversal in the stock’s movement. Considering these reasons, we can buy for long term in the price range of ₹218 – ₹223, with an upside target of ₹250. Stop-loss should be placed near ₹205.
strong fundamentals
For the first half of the current financial year, which ended September 30. Loan sanctions through IREDA increased by 303% to ₹17,860 crore compared to ₹4,437 crore in the same period last year. In terms of loan disbursement, IREDA made 56% more loan disbursements in the period ending September 30 as compared to the same half of last year. The company has disbursed loans of ₹9,787 crore whereas last year it was ₹6,273 crore.
Let us tell you that this stock was listed last year at the IPO price of ₹32. At its peak of ₹310, the stock had gained almost 10 times its IPO value. However, it is down 30% from the recent peak.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.