IRCTC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📉 IRCTC is currently consolidating with neutral momentum and low volatility, supported by strong fundamentals and stable earnings.

📊 Technical Analysis

• Trend Status: Consolidating — price is hovering around the 50-DMA and below the 200-DMA, indicating a sideways trend.
• Moving Averages: Price ₹723 is slightly above 50-DMA (₹721) but below 200-DMA (₹755), suggesting a neutral bias with potential resistance overhead.
• RSI (50.1): Neutral zone, indicating balanced momentum with no clear directional strength.
• MACD (2.07): Mildly bullish crossover, hinting at a potential upward move if supported by volume.
• Bollinger Bands: Price near the mid-band, consistent with consolidation and low volatility.
• Volume: Current volume (4.65L) is significantly below the weekly average (8.78L), showing subdued trading interest.

🎯 Entry & Exit Zones

• Support Levels: ₹710, ₹690, ₹656
• Resistance Levels: ₹740, ₹755 (200-DMA), ₹780
• Optimal Entry: ₹710–₹720 (on pullback near support)
• Exit Target: ₹755–₹780 (resistance zone)

✅ Positive

• Strong ROCE (49.0%) and ROE (37.2%) reflect excellent capital efficiency and profitability.
• Low debt-to-equity ratio (0.02) indicates a strong balance sheet.
• Consistent EPS of ₹16.7 and a stable dividend yield of 1.12% support long-term investor confidence.
• MACD crossover suggests potential for short-term upside.

⚠️ Limitation

• Price remains below 200-DMA, indicating overhead resistance and lack of breakout confirmation.
• Volume is significantly below average, limiting conviction in any directional move.
• PEG ratio of 1.80 suggests moderate overvaluation relative to growth.

📉 Company Negative News

• FII holdings declined slightly by 0.01%, reflecting marginal foreign investor caution.

📈 Company Positive News

• DII holdings increased by 0.02%, showing steady domestic institutional support.
• Quarterly PAT remained stable at ₹330 Cr, reflecting consistent earnings performance.

🏭 Industry

• The railway and tourism services sector is poised for growth with rising travel demand and digital integration.
• Industry P/E (37.4) is lower than IRCTC’s (44.2), indicating a premium valuation for the stock.

🧾 Conclusion

• IRCTC is consolidating with neutral technical momentum and strong financial fundamentals.
• Entry near ₹710–₹720 may offer a favorable setup with targets around ₹755–₹780.
• Investors should watch for volume confirmation and RSI/MACD signals to validate breakout potential.