Technical Analysis

Tech Query: What is the medium-term target for IRCTC stock?

Yoganand D BL Research Bureau | Updated on September 11, 2021

I have bought shares of IRCTC at an average price of ₹2,435. What is the possible medium-term target?

Tushar L Palve

IRCTC (₹3,295.1): The stock of Indian Railway Catering and Tourism Corporation (IRCTC) extended the uptrend and had jumped 14.8 per cent in the past week, accompanied by above average volume. Since recording a low at ₹774 in March 2020, the stock has been in a long-term uptrend. Medium as well as short-term trends are up. During the rally the stock had decisively breached a key resistance at ₹2,000 in June this year and continued to trend upwards.

This level at ₹2,000 will act as a significant long-term base for the stock. It now trades well above the 21- and 50-day moving averages. The stock tests a vital resistance at ₹3,400. A conclusive break above this level can take it higher to ₹3,500 and then to ₹3,600 over the medium term. Inability to move beyond ₹3,400 can pull the stock down to ₹3,100 and can keep it in a sideways range. That said, if the stock slumps below the key base level of ₹3,000 it will bring back selling pressure and pull it down to ₹2,800 and then to ₹2,700. Crucial supports thereafter are at ₹2,550 and ₹2,400. You can consider taking partial profit if the stock fails to move beyond ₹3,400 and re-enter at lower levels with a stop-loss at ₹2,500.

I am holding HUDCO at ₹46 and TV18 Broadcast at ₹47. Kindly advise regarding the technical outlook for these stocks.

N Sreenivasa Reddy

HUDCO (₹43): The stock of Housing & Urban Development Corporation (HUDCO) now faces a key resistance in the band between ₹44 and ₹45. A clear breakthrough of this resistance will strengthen the near term bullish momentum and take the stock higher to ₹48 and then to ₹52. Resistances thereafter are placed at ₹55 and ₹60. A further rally above ₹60 can pave the way for an up-move to ₹65 and then to ₹70 levels. Failure to move beyond ₹45 can keep the medium-term downtrend intact and pull the stock down to ₹40. Next supports below ₹40 are placed at ₹35 and ₹30 levels. You can consider averaging the stock at lower levels with a long-term stop-loss at ₹35.

TV18 Broadcast (₹35.7): The stock has been in a medium-term downtrend since it met with a key resistance at around ₹48 early June this year. As long as the stock trades below ₹40, this downtrend will remain in place. A fall below the immediate support level of ₹33 can pull the stock down to ₹30 and then to ₹28 or to ₹26 levels. Average at lower levels with a stop-loss at ₹25. Resistances above ₹40 are at ₹44 and ₹48.

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Published on September 11, 2021

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