IRB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.5

📊 Chart Patterns: IRB is trading below both its 50 DMA (42.9 ₹) and 200 DMA (46.0 ₹), showing short-term weakness. Current price (41.1 ₹) is near support at 40.5–41 ₹, with resistance around 43–46 ₹. Broader range remains 40–46 ₹.

📉 Moving Averages: Price below both averages indicates bearish sentiment and lack of momentum.

📉 RSI: At 34.0, RSI suggests the stock is oversold, indicating potential rebound opportunities.

📉 MACD: Negative at -0.62, confirming bearish momentum and signaling caution for traders.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce.

📉 Volume Trends: Current volume (49,28,538) is below average weekly volume (57,59,464), showing reduced participation and weak buying conviction.

📌 Short-term Momentum Signals: Weak momentum with oversold RSI. A bounce is possible if price holds above 40.5 ₹. Breakout above 43–46 ₹ could trigger recovery toward 50 ₹.

🎯 Optimal Entry Zone: 40.5–41.5 ₹ (near support).

🎯 Optimal Exit Zone: 46–50 ₹ (near resistance).

📉 Trend Status: The stock is reversing downward but oversold conditions suggest potential short-term consolidation or rebound.

Positive

• Quarterly PAT growth (188 Cr. vs 140 Cr.), up 17.8%, highlights earnings resilience.
• EPS of 9.34 ₹ supports valuation strength.
• PEG ratio of 0.60 indicates attractive growth relative to valuation.
• Dividend yield of 0.74% provides steady shareholder returns.

Limitation

• Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
• ROCE (7.21%) and ROE (8.13%) are modest compared to peers.
• Volume participation is weaker than average, reducing breakout conviction.

Company Negative News

• FII holding decreased by -0.21%, showing reduced foreign investor confidence.
• DII holding decreased by -0.63%, reflecting reduced domestic institutional support.

Company Positive News

• Quarterly PAT growth highlights strong operational performance.
• EPS improvement and attractive PEG ratio indicate valuation strength.

Industry

• Industry PE at 18.8 is lower than IRB’s PE (27.5), suggesting relative overvaluation.
• Infrastructure and road development sector outlook remains positive with government focus on expansion projects.

Conclusion

⚖️ IRB shows fundamental strength with steady profit growth, attractive PEG ratio, and dividend yield. However, technically the stock is weak, trading below key averages with bearish signals from RSI and MACD. Entry is favorable near 40.5–41.5 ₹ with cautious exit around 46–50 ₹. Long-term investors may hold for sector growth, while short-term traders should wait for breakout above 43–46 ₹.