IRCTC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | IRCTC | Market Cap | 43,208 Cr. | Current Price | 540 ₹ | High / Low | 820 ₹ |
| Stock P/E | 31.2 | Book Value | 53.2 ₹ | Dividend Yield | 1.57 % | ROCE | 49.0 % |
| ROE | 37.2 % | Face Value | 2.00 ₹ | DMA 50 | 600 ₹ | DMA 200 | 679 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | -0.16 % | PAT Qtr | 387 Cr. | PAT Prev Qtr | 338 Cr. |
| RSI | 35.1 | MACD | -24.7 | Volume | 24,72,854 | Avg Vol 1Wk | 23,26,426 |
| Low price | 518 ₹ | High price | 820 ₹ | PEG Ratio | 1.27 | Debt to equity | 0.02 |
| 52w Index | 7.27 % | Qtr Profit Var | 13.3 % | EPS | 17.8 ₹ | Industry PE | 40.3 |
📉 Chart & Trend: IRCTC is trading at ₹540, below both its 50 DMA (₹600) and 200 DMA (₹679), confirming a bearish bias.
📊 RSI: At 35.1, RSI is approaching oversold territory, showing weak momentum but potential for a short-term rebound.
📉 MACD: Negative at -24.7, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce if support holds.
📊 Volume Trends: Current volume (24.7 lakh) is slightly above the 1-week average (23.2 lakh), showing increased participation but mostly on the sell side.
📌 Momentum Signals: Short-term momentum is negative. Sustaining above ₹530–₹540 support is crucial; a breakout above ₹560–₹570 could trigger recovery.
🎯 Entry Zone: ₹530–₹540 (support zone, cautious entry).
🎯 Exit Zone: ₹580–₹600 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with oversold signals and weak momentum.
Positive
- Strong ROCE (49%) and ROE (37.2%) highlight operational efficiency.
- Quarterly PAT improved to ₹387 Cr from ₹338 Cr (+13.3%).
- EPS at ₹17.8 supports valuations.
- Dividend yield of 1.57% provides income support.
- Debt-to-equity ratio at 0.02 indicates a nearly debt-free balance sheet.
Limitation
- P/E of 31.2 is expensive compared to industry PE of 40.3, though PEG ratio at 1.27 suggests moderate valuation.
- Price trading below both DMA 50 and DMA 200.
- Weak technical momentum with bearish MACD and low RSI.
- Institutional holdings declined (FII -0.08%, DII -0.16%).
Company Negative News
- Institutional outflows (FII and DII).
- Stock under pressure technically with bearish signals.
Company Positive News
- Quarterly profit growth (+13.3%).
- Strong efficiency ratios (ROCE and ROE).
- Dividend yield adds investor appeal.
- Debt-free balance sheet strengthens financial stability.
Industry
- Industry PE at 40.3 is higher than IRCTC’s P/E of 31.2, showing relative undervaluation.
- Travel and tourism sector is cyclical, driven by passenger volumes, discretionary spending, and government policies.
Conclusion
⚠️ IRCTC is in a bearish trend with oversold technical indicators. While fundamentals are strong with high ROCE, ROE, and dividend yield, weak technical momentum and institutional outflows limit short-term attractiveness. Short-term traders may consider entry near ₹530–₹540 with strict stop-loss, targeting ₹580–₹600. Long-term investors can accumulate gradually, given strong fundamentals and sectoral tailwinds.
Selva, since you’re benchmarking travel and tourism plays, I can prepare a peer overlay with Indigo, SpiceJet, and Thomas Cook India to compare IRCTC’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?