11% Weekly Gain: What Does This PSU Stock’s Chart Pattern Indicate About a Potential Trade?

Indian Railway Finance Corporation Ltd. (IRFC) shares closed Friday’s trading session 5.19% higher at Rs 158.05 per share on the BSE, after advancing 10.72% during the preceding five trading days. Actually, one of Dalal Street’s multibagger stocks at the moment is IRFC.

The shares shot up from Rs 33.56 to its present level in less than a year, providing positioned owners with a multibagger return of 370.95%. The Miniratna PSU stock IRFC has increased year over year (YTD) by 57.47% in 2024, indicating that the upward trend is continuing. Axis Securities gave a buy call to IRFC, with a target price of Rs 178-185 in three to four weeks, for investors looking for PSU equities to acquire.

Target price for IRFC shares: Rs 178–185; buy range: Rs 156–152; trend reversal: Rs 142; timeframe: 3–4 weeks

A solid bullish candle on the daily chart validated the stock’s noteworthy breach above the “Multiple Resistance” zone at 153, suggesting that the medium-term uptrend is likely to continue. Increased volume activity near the breakout point indicates a surge in market involvement. In addition to holding its position above a medium-term upward sloping trendline, the stock is showing higher highs and lower lows, confirming its medium-term uptrend.

around 134, the stock established a short-term support base around the 50% Fibonacci Retracement level of the most recent rise from 116 to 152. Positive bias is shown by the daily Relative Strength Index (RSI) staying above its reference line. Axis Securities wrote in a report that “the stock is expected to advance towards previous swing highs set in late January 2024, targeting a range between 178 and 185, after surpassing the Multiple Resistance level.”

Concerning IRFC
IRFC is a Schedule ‘A’ Public Sector Enterprise governed by the Indian government’s Ministry of Railways. It is also registered as an Infrastructure Finance Company (NBFC-IFC) and a Systemically Important Non-Deposit-taking Non-Banking Financial Company (NBFC – ND-SI) with the Reserve Bank of India (RBI). The financial solutions offered by IRFC have been very beneficial to the Indian Railways and associated enterprises throughout the course of their more than thirty years in operation.

Furthermore, the IRFC has provided funding to other railway-related organizations, including as Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), and Pipavav Railway Corporation Limited (PRCL). Schedule ‘A’ Miniratna Public Sector Enterprise, the Indian Railway Finance Corporation (IRFC) is overseen by the Ministry of Railways, an arm of the Indian government.