IRCTC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | IRCTC | Market Cap | 48,508 Cr. | Current Price | 606 ₹ | High / Low | 820 ₹ |
| Stock P/E | 36.3 | Book Value | 53.2 ₹ | Dividend Yield | 1.32 % | ROCE | 49.0 % |
| ROE | 37.2 % | Face Value | 2.00 ₹ | DMA 50 | 658 ₹ | DMA 200 | 714 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | -0.16 % | PAT Qtr | 338 Cr. | PAT Prev Qtr | 330 Cr. |
| RSI | 35.8 | MACD | -16.2 | Volume | 32,21,929 | Avg Vol 1Wk | 22,09,856 |
| Low price | 600 ₹ | High price | 820 ₹ | PEG Ratio | 1.48 | Debt to equity | 0.02 |
| 52w Index | 2.93 % | Qtr Profit Var | 9.69 % | EPS | 17.1 ₹ | Industry PE | 42.3 |
📊 Chart Patterns & Trend: IRCTC is in a bearish reversal phase after correcting from its highs. Price is trading below both the 50 DMA (658 ₹) and 200 DMA (714 ₹), indicating short-term weakness and medium-term resistance. Strong support is visible near 600–610 ₹, while resistance lies around 650–670 ₹.
📉 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. Sustained move above 660–670 ₹ would confirm bullish momentum.
📉 RSI: At 35.8, RSI is weak, suggesting bearish momentum and oversold conditions.
📉 MACD: Negative (-16.2), showing bearish crossover and continued downside momentum.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward 640–650 ₹ is possible if support holds.
📊 Volume Trends: Current volume (32.2 lakh) is higher than average weekly volume (22.1 lakh), showing active participation despite weakness.
🎯 Entry Zone: 600–610 ₹ (support zone).
🎯 Exit Zone: 650–670 ₹ (resistance zone).
🔑 Stop Loss: 590 ₹ (below recent support).
Positive
- Strong ROCE at 49% and ROE at 37.2% indicate excellent efficiency.
- Debt-to-equity ratio at 0.02 shows virtually debt-free balance sheet.
- EPS at 17.1 ₹ supports valuation strength.
- Dividend yield of 1.32% adds income stability.
- Quarterly PAT improved from 330 Cr. to 338 Cr. (9.69% growth).
Limitation
- Price trading below both 50 DMA and 200 DMA confirms short-term weakness.
- RSI and MACD both indicate bearish momentum.
- PEG ratio at 1.48 suggests limited growth-adjusted value.
- Stock P/E at 36.3 is slightly lower than industry PE (42.3), but sentiment remains cautious.
Company Negative News
- FII holdings decreased (-0.08%) and DII holdings decreased (-0.16%), showing reduced institutional confidence.
- Stock corrected sharply from 820 ₹ to 606 ₹, reflecting investor caution.
Company Positive News
- Quarterly PAT growth highlights operational improvement.
- Strong fundamentals with high ROCE and ROE.
- Debt-free balance sheet provides financial stability.
Industry
- Industry PE at 42.3 vs. stock PE at 36.3 highlights relative undervaluation.
- Travel and tourism sector supported by rising demand for rail services and government initiatives.
Conclusion
⚖️ IRCTC is in a bearish reversal phase with weak signals (RSI low, MACD negative). Short-term bounce is possible from 600–610 ₹, but resistance near 650–670 ₹ limits upside. Medium-term outlook remains cautious due to declining institutional holdings and weak technicals, though strong fundamentals, debt-free status, and efficiency ratios provide resilience. Risk management is crucial for traders considering entry.
Would you like me to extend this into a peer benchmarking overlay with other travel and tourism-related stocks (like Indian Hotels, SpiceJet, and EaseMyTrip) to highlight relative strength and sector rotation opportunities?