The Indian Railway Finance Corporation (IRFC) stock witnessed a 1.27% decline today, closing at ₹158.56. This drop, coupled with ongoing market sentiment, suggests the stock is facing near-term bearish pressure. However, with its long-term fundamentals tied to India’s expanding railway infrastructure, many investors continue to monitor its movements closely.
The daily chart highlights that IRFC has been on a downward trajectory since hitting resistance around ₹199.76 in July. After multiple failed attempts to break above ₹186.44, the stock steadily declined, finally dipping below the crucial support level of ₹161.31. Currently trading at ₹158.56, the next key support lies at ₹138.18. A break below this level could see the stock enter deeper bearish territory.
On the upside, if IRFC manages to sustain above ₹161.31, it could potentially target the ₹186.44 resistance level once more. Technical indicators also point towards oversold conditions, which might signal a possible short-term rebound if buyers re-enter the market. Yet, without strong upward momentum, any rallies may remain short-lived.
In the current market scenario, the ₹161 level will be essential to watch, as a decisive close above this could hint at a reversal. However, failure to hold above ₹158 may invite further selling pressure, with the next key support level being ₹138.
This post was last modified on Sep 18, 2024, 15:11 BST 15:11