IRCON - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns: IRCON is trading below both its 50 DMA (162 ₹) and 200 DMA (176 ₹), showing short-term weakness. Current price (153 ₹) is near support at 150–152 ₹, with resistance around 162–165 ₹. Broader range remains 150–165 ₹.

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

📉 RSI: At 37.1, RSI suggests the stock is oversold, indicating potential rebound opportunities.

📉 MACD: Negative at -3.48, 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 (15,15,460) is higher than average weekly volume (13,20,250), showing increased participation despite weakness.

📌 Short-term Momentum Signals: Weak momentum with oversold RSI. A bounce is possible if price holds above 150 ₹. Breakout above 162–165 ₹ could trigger recovery toward 175 ₹.

🎯 Optimal Entry Zone: 150–153 ₹ (near support).

🎯 Optimal Exit Zone: 162–175 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, awaiting reversal signals.

Positive

• EPS of 7.38 ₹ supports valuation strength.
• ROCE (14.7%) and ROE (11.6%) indicate decent operational efficiency.
• Dividend yield of 1.71% provides steady shareholder returns.
• Debt-free balance sheet (0.00 debt-to-equity) ensures financial stability.
• FII holding increased slightly by 0.03% and DII holding by 0.04%, showing investor confidence.

Limitation

• Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
• High PEG ratio of 2.35 indicates limited growth relative to valuation.
• 52-week index at 19.8% shows poor performance compared to highs.

Company Negative News

• Quarterly PAT declined (185 Cr. vs 151 Cr.), showing -8.68% variation, indicating earnings pressure.

Company Positive News

• Debt-free status strengthens financial stability.
• Dividend yield of 1.71% provides consistent shareholder returns.
• Marginal increase in FII and DII holdings reflects investor confidence.

Industry

• Industry PE at 18.8 is slightly lower than IRCON’s PE (20.8), suggesting mild overvaluation.
• Infrastructure and railway construction sector outlook remains positive with government focus on expansion projects.

Conclusion

⚖️ IRCON shows decent fundamentals with debt-free status, dividend yield, and moderate efficiency ratios. However, technically the stock is consolidating below key averages with bearish signals from RSI and MACD. Entry is favorable near 150–153 ₹ with cautious exit around 162–175 ₹. Long-term investors may hold for sector strength, while short-term traders should wait for breakout above 162 ₹.