Today, IREDA (Indian Renewable Energy Development Agency) stock saw a 6.5% rally, breaking a four-day losing streak where it had fallen by 10%. Despite today’s recovery, IREDA stock is still trading below its 100-day Moving Average. The company’s market cap now stands at ₹59,937 crores, though it remains 28% below its all-time high of ₹310.
During the previous four days of decline, the Relative Strength Index (RSI) of IREDA dropped to 33, nearing the “oversold” zone (an RSI reading below 30 indicates that a stock is oversold). Investors are now questioning whether the stock will recover to its all-time high.
Stock Price Summary (as of 8 Oct 2024, 3:30 PM IST)
- Price: ₹225.11
- Change: +₹13.98 (6.62%)
- Open: ₹208.15
- High: ₹225.40
- Low: ₹206.00
- Market Cap: ₹60,340 Crores
- P/E Ratio: 42.35
- 52-Week High: ₹310.00
- 52-Week Low: ₹50.00
Factors Affecting IREDA’s Stock Movement:
According to market experts, closing above ₹235 will be crucial for IREDA to continue its upward momentum toward its lifetime high. Currently, the stock is trading in a lower high, lower low pattern, signaling a downtrend. However, the recent decline occurred without significant volume, suggesting that the stock could rebound if it closes above this key level.
Target and Stop Loss Recommendations:
Jigar Patel of Anand Rathi highlights that after hitting a high of ₹310, IREDA experienced a sharp 100-point correction, resulting in a 33% decline. The current price action appears stable near the previous breakout zone, and the daily RSI has shown a V-shaped recovery around the 33 level, indicating potential momentum reversal and a favorable entry point.
Patel recommends:
- Buy Range: ₹218 – ₹223
- Target: ₹250
- Stop-Loss: ₹205
Financial Performance in the First Half of the Current Fiscal Year:
In the first half of the current fiscal year, IREDA saw significant growth in loan approvals and disbursements:
- Loan Approvals: Increased by 303% to ₹17,860 crores (compared to ₹4,437 crores in the same period last year).
- Loan Disbursements: Grew by 56% to ₹9,787 crores (compared to ₹6,273 crores in the previous year).
IREDA’s stock was listed last year at an IPO price of ₹32, reflecting its strong growth trajectory in the renewable energy sector.
Summary of Key Insights:
| Key Metric | Details |
|---|---|
| Stock Price on 8 Oct 2024 | ₹225.11 (+6.62%) |
| Market Cap | ₹60,340 crores |
| 52-Week High/Low | ₹310.00 / ₹50.00 |
| Recent RSI | 33, close to “oversold” zone |
| Buy Range | ₹218 – ₹223 |
| Target Price | ₹250 |
| Stop-Loss | ₹205 |
| Loan Approvals Growth (H1) | 303% increase (₹17,860 crores in H1 FY24) |
| Loan Disbursements Growth (H1) | 56% increase (₹9,787 crores in H1 FY24) |
IREDA’s stock has shown signs of recovery, but closing above key levels is essential for a sustained upward movement. Investors looking for opportunities in the renewable energy space should consider technical indicators and volume before making decisions.
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