IRFC shares may see 33% upside, but a chartist wants it to cross these levels first

Shares of IRFC have cooled off by 12% from their recent highs of ₹200 that they had hit on June 3, the day of the exit polls. After the fall it witnessed on June 4, post which it fell to levels of ₹164, it is on the path to recovery. However, the stock is yet to retest levels of ₹188, which is the level at which it closed on June 3.

Technical Analyst Manas Jaiswal believes that one must hold on to their positions in IRFC if they are holding them. He advises maintaining a stop loss of ₹159.

“The first target one must keep is that of ₹200,” Jaiswal said while answering a viewer query on CNBC Awaaz. ₹200 is the recent record high made by the stock.

“Once the stock crosses ₹200, it will enter unchartered territory, post which it can see levels of ₹235 on the upside,” Jaiswal said. Levels of ₹235 implies a potential upside of 33% from Monday’s closing levels for IRFC.

IRFC was the first IPO of 2021 and an underperformer for the next three years of listing. However, the stock saw a stellar 2023, during which shares nearly tripled and those gains continued into January of 2024 as well, when the stock surged 75%.

Even at Monday’s closing price, shares of IRFC are up 7x from their IPO price of ₹26 per share.

At the current price, IRFC commands a market capitalisation of ₹2.31 lakh crore, which is more valuable than many Nifty 50 companies, and is higher than most railway-linked companies as well.

Shares of IRFC ended 0.3% higher at ₹176.9. The stock is up 76% so far in 2024. Post the gains in January, the stock has mostly been in consolidation mode.