IREDA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.5

📊 Chart Patterns: IREDA is trading below both its 50 DMA (143 ₹) and 200 DMA (157 ₹), showing weakness. Price action suggests a downtrend with support near 129 ₹ and resistance around 140–145 ₹.

📈 Moving Averages: Current price (133 ₹) is below both 50 DMA and 200 DMA, confirming bearish sentiment in the short-to-medium term.

📉 RSI: At 31.3, RSI is near oversold territory, indicating heavy selling pressure and potential for rebound.

📉 MACD: Negative (-3.98) confirms bearish crossover, supporting downside momentum.

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

📊 Volume Trends: Current volume (50.7 lakh) is higher than 1-week average (38.5 lakh), showing strong selling activity and volatility.

📌 Momentum Signals: Weak short-term momentum; rebound possible if support at 129 ₹ holds.

🎯 Entry Zone: 130–134 ₹ (near support).

🎯 Exit Zone: 140–145 ₹ (near resistance trendline).

🔎 Trend Status: Reversing from oversold levels but still in bearish territory.

Positive

• Quarterly PAT growth of 41.6% (₹549 Cr vs ₹247 Cr).
• EPS of 6.28 ₹ supports valuation stability.
• PEG ratio of 0.56 indicates reasonable valuation relative to growth.
• ROE of 18% shows decent profitability.

Limitation

• High debt-to-equity ratio (5.41) raises financial risk concerns.
• ROCE (9.37%) is relatively weak compared to peers.
• No dividend yield, reducing income appeal.
• Stock trading below both 50 DMA and 200 DMA, showing technical weakness.

Company Negative News

• Decline in FII holding (-0.12%) and DII holding (-0.38%) shows reduced institutional confidence.
• Weak technical indicators (RSI, MACD) point to short-term bearishness.

Company Positive News

• Quarterly profits improved significantly (₹549 Cr vs ₹247 Cr).
• EPS growth supports long-term valuation.
• Strong fundamentals with improving profitability despite high leverage.

Industry

• Industry PE at 21.2 is close to IREDA’s P/E (21.7), suggesting fair valuation relative to peers.
• Renewable energy financing sector remains critical for infrastructure growth, offering long-term demand stability.

Conclusion

⚖️ IREDA is oversold with RSI at 31.3, suggesting potential for short-term rebound. Traders may consider entry near 130–134 ₹ with exit around 140–145 ₹. Long-term investors should be cautious due to high leverage and weak efficiency metrics, despite strong profit growth and reasonable valuation.