Stock to buy: Sumeet Bagaria recommends IREDA with more than 10% upside. Here’s why

Stock to Buy: Indian Renewable Energy Development Agency Ltd (IREDA) share price gained more than 4% on Tuesday during intraday trades. The IREDA share price opened at ₹177.00 on the NSE, however rose to ₹184.80 by afternoon, reflecting gains of 4.8 % over the previous close. 

Choice Broking has recommended Buying IREDA  at ₹181 levels with a target of ₹203 for IREDA share price and a stop loss at 170 . 

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IREDA is presently trading having recently formed a cup & handle pattern with a  notable surge in trading volume, said Sumeet Bagaria led Research Team at Choice Broking. This breakout suggests potential further upward movement for IREDA share price, with projected price targets set at ₹203 as per Bagaria at Choice Broking. A significant support level is identified near ₹170 on the downside.

Furthermore, IREDA share price is currently trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This indicates robust bullish momentum for IREDA share price, signaling the likelihood of sustained upward price action. 

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The Relative Strength Index (RSI) stands at 62.2, as per Bagaria of Choice Broking implying an upward trajectory and affirming an increase in buying momentum.

To effectively manage risk, it is advisable to establish a stop-loss (SL) at ₹170 fro IREDA share price,  to protect the investment against unexpected market reversals. A prudent approach as per Bagaria, involves considering buying opportunities during market dips at levels around ₹177. 

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In summary, based on technical analysis and prevailing market conditions, IREDA share price thereby presents a promising buying opportunity for those targeting a ₹203 price objective, contingent upon implementing prudent risk management measures, said Sumeet Bagaria at Choice Broking

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

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Published: 21 May 2024, 01:57 PM IST