IRCTC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📊 Chart Patterns: IRCTC is trading below both its 50 DMA (693 ₹) and 200 DMA (736 ₹), showing weakness. Price action indicates consolidation near support levels around 656 ₹, with resistance at 700–720 ₹.

📈 Moving Averages: Current price (675 ₹) is below both 50 DMA and 200 DMA, confirming short-term and medium-term bearish sentiment.

📉 RSI: At 34.0, RSI is close to oversold territory, suggesting potential for a rebound if support holds.

📉 MACD: Negative (-9.50) indicates bearish crossover, confirming downside momentum.

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

📊 Volume Trends: Current volume (3.58 lakh) is in line with 1-week average (3.56 lakh), showing stable participation but no strong buying interest.

📌 Momentum Signals: Weak short-term momentum; rebound possible if price sustains above 670 ₹.

🎯 Entry Zone: 665–675 ₹ (near support).

🎯 Exit Zone: 700–720 ₹ (near resistance trendline).

🔎 Trend Status: Consolidating with bearish bias.

Positive

• Strong ROCE (49.0%) and ROE (37.2%) highlight excellent efficiency.
• Debt-to-equity ratio is very low (0.02), showing financial stability.
• Dividend yield of 1.21% adds investor appeal.
• Quarterly PAT growth of 9.69% (₹338 Cr vs ₹330 Cr).

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing technical weakness.
• High P/E ratio (40.4) compared to industry PE (39.9), suggesting overvaluation.
• PEG ratio of 1.64 indicates expensive valuation relative to growth.

Company Negative News

• Decline in FII holding (-0.01%) shows reduced foreign investor confidence.
• Weak technical indicators (RSI, MACD) point to short-term bearishness.

Company Positive News

• Quarterly profits improved (₹338 Cr vs ₹330 Cr).
• DII holdings increased (+0.02%), showing domestic institutional support.
• Strong fundamentals with high efficiency ratios and low debt.

Industry

• Industry PE at 39.9 is close to IRCTC’s P/E (40.4), suggesting fair valuation relative to peers.
• Travel and tourism sector outlook remains positive with rising demand post-pandemic recovery.

Conclusion

⚖️ IRCTC is consolidating near support levels with weak short-term momentum. Traders may consider entry around 665–675 ₹ with exit near 700–720 ₹. Long-term investors benefit from strong fundamentals, low debt, and efficiency, though high valuation and weak near-term technicals remain concerns.