IRFC - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns: IRFC is trading below its 50 DMA (119 ₹) and 200 DMA (128 ₹), showing weakness. Price action suggests a downtrend with support near 108 ₹ and resistance around 120–125 ₹.

📈 Moving Averages: Current price (114 ₹) is below both 50 DMA and 200 DMA, confirming bearish sentiment in the short-to-medium term.

📉 RSI: At 30.2, RSI is near oversold territory, indicating the stock is heavily sold and may see a technical rebound.

📉 MACD: Negative (-2.45) confirms bearish crossover, supporting downside momentum.

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

📊 Volume Trends: Current volume (71.3 lakh) is higher than 1-week average (54.6 lakh), showing strong selling pressure and volatility.

📌 Momentum Signals: Weak short-term momentum; rebound possible if support at 108 ₹ holds.

🎯 Entry Zone: 110–114 ₹ (near support).

🎯 Exit Zone: 120–125 ₹ (near resistance trendline).

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

Positive

• Quarterly PAT growth of 10.2% (₹1,777 Cr vs ₹1,746 Cr).
• EPS of 5.23 ₹ supports valuation stability.
• Dividend yield of 1.42% adds investor appeal.
• FII holdings increased (+0.04%) and DII holdings increased (+0.03%), showing institutional support.

Limitation

• High debt-to-equity ratio (7.25) raises financial risk concerns.
• ROCE (5.83%) and ROE (12.8%) are relatively weak compared to peers.
• PEG ratio of 9.87 indicates expensive valuation relative to growth.
• Stock trading below both 50 DMA and 200 DMA, showing technical weakness.

Company Negative News

• High leverage (Debt-to-equity 7.25) raises concerns about balance sheet strength.
• Weak technical indicators (RSI, MACD) point to short-term bearishness.

Company Positive News

• Quarterly profits improved (₹1,777 Cr vs ₹1,746 Cr).
• Institutional support from both FII and DII inflows.
• Dividend yield provides steady income for investors.

Industry

• Industry PE at 21.2 is close to IRFC’s P/E (21.8), suggesting fair valuation relative to peers.
• Railway financing sector remains critical for infrastructure growth, offering long-term demand stability.

Conclusion

⚖️ IRFC is oversold with RSI at 30.2, suggesting potential for short-term rebound. Traders may consider entry near 110–114 ₹ with exit around 120–125 ₹. Long-term investors should be cautious due to high leverage and weak efficiency metrics, despite steady profit growth, dividend yield, and institutional support.