IRB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.9

📈 IRB is trending upward with moderate momentum and technical strength, though short-term signals suggest caution near resistance.

📊 Technical Analysis

• Trend Status: Trending — price is above 50-DMA but slightly below 200-DMA, indicating recovery with resistance overhead.
• Moving Averages: Price ₹45.2 is above 50-DMA (₹43.6) but below 200-DMA (₹47.3), suggesting a potential breakout if sustained.
• RSI (65.1): Bullish zone, nearing overbought territory, signaling strong momentum but possible short-term exhaustion.
• MACD (0.51): Positive crossover, indicating bullish sentiment continuation.
• Bollinger Bands: Price near upper band, suggesting strength but also short-term resistance.
• Volume: Current volume (69.4L) is in line with weekly average (69.9L), showing stable participation.

🎯 Entry & Exit Zones

• Support Levels: ₹43.6 (50-DMA), ₹41.5, ₹40.5 (52-week low)
• Resistance Levels: ₹47.3 (200-DMA), ₹50, ₹55
• Optimal Entry: ₹43.5–₹44.5 (on pullback near support)
• Exit Target: ₹50–₹55 (resistance zone)

✅ Positive

• PEG ratio of 0.68 suggests undervaluation relative to growth.
• EPS of ₹9.29 and consistent dividend yield (0.67%) enhance investor appeal.
• MACD and RSI indicate bullish momentum with potential for continuation.

⚠️ Limitation

• Price below 200-DMA indicates overhead resistance and trend uncertainty.
• ROCE (7.21%) and ROE (8.13%) are modest, reflecting limited capital efficiency.
• Volume is flat, suggesting lack of strong breakout conviction.

📉 Company Negative News

• Quarterly PAT declined from ₹278 Cr to ₹140 Cr, indicating margin pressure.
• FII holdings dropped by 0.21% and DII holdings by 0.63%, showing institutional caution.

📈 Company Positive News

• Stock has rebounded 11.6% from its recent low of ₹40.5.
• MACD crossover and RSI strength suggest technical recovery underway.

🏭 Industry

• Infrastructure and road development sector remains active with government support and long-term growth potential.
• Industry P/E (22.1) is lower than IRB’s (31.1), indicating premium valuation.

🧾 Conclusion

• IRB is trending upward with moderate technical strength and improving momentum.
• Entry near ₹43.5–₹44.5 could offer a favorable setup with targets around ₹50–₹55.
• Investors should monitor resistance at 200-DMA and institutional flows for sustained upside.