After hitting a record high in early trades, shares of Indian Railway Catering and Tourism Corporation (IRCTC) saw a dramatic drop of 1,400 points to close to 4,995 per share in Tuesday’s trading session. The stock ended the day at Rs 5,363 per share, down more than 8%. IRCTC shares hit a new high of Rs. 6,393, up more than 7%, with the company’s market capitalization topping Rs. 1 trillion in early trading.
On the other hand, the BSE Sensex and Nifty 50 concluded the day with minor losses as investors booked profits at record levels. The 30-share BSE Sensex fell 49.54 points, or 0.08 percent, to 61,716.05. It had reached a career high of 62,245.43 during the session. Similarly, the Nifty closed at 18,418.75, down 58.30 points or 0.32 percent. According to a PTI report, it hit a fresh intra-day high of 18,604.45 in early trading.
“The next level of support for IRCTC is at 4750-4500, from which a rebound is expected, so long-term investors should consider buying on the decline. Because the stock is under profit-booking pressure and will remain volatile, traders are advised to keep strict stop-losses,” says Rahul Sharma, co-founder of Equity99.
“The fundamentals of IRCTC are still strong, but there is valuation concern after a steep run, and there was a clear speculative move as it was easy to make money for traders every day,” he said. “We are seeing a technical correction where the psychological level of 5000 is immediate support, but there is a risk that it may slip below this and head towards the 20-DMA, which may coincide with the 4500 level, but 4000-3800 will be a critical demand zone to take
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