Major stock levels to see IRCTC, IEX shares jump in relief rally

Indian Railway Catering and Tourism Corporation (IRCTC) touched its record high ₹6,369 on 19 October. The stock has consistently performed well, delivering great returns since it made its October 2019 debut. However, the stock struggled to maintain its rally over the past few sessions.

“IRCTC is showing a relief rally from a crucial demand zone of 4000-3700, however 4500-4700 will act as a supply zone and if it manages to break out of this zone, we will move towards 5200/5500 levels. Can expect a fresh uptrend. On the downside, if it starts trading below 3700 then we can see further selling pressure and it could move towards 3000 mark although there is a high chance that it will move towards 4000-5000 for some time. Can stay sideways in range. Direction ahead,” said Santosh Meena, Head of Research, Swastika Investmart.

IRCTC came under pressure last week after it came under the F&O sanctions list. Analysts say that though the stock is out of the sanctions list, volatility is still high.

“Traders are creating new long positions on account of huge improvement in IRCTC, which is strong due to its pure monopoly business, strong financials as well as debt-free position of the company. Technically too, IRCTC Ravi Singhal, Vice Chairman, GCL Securities Limited said, there is a possibility to touch 4600 level with strong support of 4000 level in near future.

On the other hand, Indian Energy Exchange (IEX) is the major electricity exchange in India, which facilitates the trading of electricity. It has a market share of around 95% in the power exchange market.

Energy Exchange’s stock has been in focus since announcing the issue of bonus shares along with its second-quarter earnings. Over the past year, IEX has remained quite valuable given its clean balance sheet, near monopoly and bright future prospects.

“IEX is respecting its 20-DMA which is currently placed at 714 level and if it moves below its 20-DMA then 650-620 will be the next important demand area. The overall structure is still bullish and it can resume its bullish momentum anytime till it trades above the 600 mark. On the upside, 800-820 area will act as a resistance zone while a move below 600 could lead to more selling pressure,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

IX The Board has recommended a bonus issue of equity shares in the ratio of 2:1, subject to the approval of the shareholders. The record date for the bonus issue is yet to be announced.

“The stock of the energy exchange has risen significantly in the last few sessions due to the announcement of its second quarter earnings and bonus issue. In addition, on September 1 last year, IEX launched the G-TAM product, a green-term-forward market, but not for the sale or purchase of electricity the next day. IEX may touch 800-820 levels in near future and find strong support near 700 levels,” said Ravi Singh, Head of Research & Vice President, ShareIndia.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.